Is Intel the Turnaround Stock of 2025 and a Buy Now?

Intel Corporation INTC stock plunged 70% post chip foundry venture, yet Lip-Bu Tan’s appointment as new CEO and recent 10% stock rise hint at a potential turnaround. Is it a good buy now? Let’s see. Intel May Rebound in 2025 for Four Key Reasons Both Intel and NVIDIA Corporation NVDA produce graphics processing units (GPUs) that are essential for modern computing, including machine learning and artificial intelligence (AI). However, NVIDIA’s CUDA software and Blackwell chips are highly sought after by developers and customers. The superior products from NVIDIA have allowed the company to secure a substantial share in most major AI segments, including data centers (read more: Is NVIDIA's Rise in Value a Sign to Invest in NVDA Stock?).Of course, it’s challenging for Intel to compete with NVIDIA, but the former has more room to grow with a market capitalization of under $100 billion compared to NVIDIA’s $3 trillion plus. Moreover, Intel’s affordable AI accelerators can rival NVIDIA’s. Intel is spending billions of dollars on enhancing its AI capabilities and may enter the market with energy-efficient chips.  In the last two years, Intel has spent over $50 billion on upgrading its chip-manufacturing facilities. Such staggering infrastructure costs have made investors nervous due to the unprofitable foundry business. Intel’s foundry business continues to face tough competition from the likes of Taiwan Semiconductor Manufacturing Company Limited TSM, or TSMC, and Samsung. However, TSMC and Samsung located in Southeast Asia, have manufacturing centers in China. The ongoing trade tensions between the United States and China could disrupt their business. In contrast, Intel’s chip-making hubs are primarily in the United States, allowing domestic semiconductor companies to send chip orders to these facilities and bypass trade restrictions.  Despite losing the top semiconductor title, Intel generated revenues of $12.7 billion in the first quarter of 2025, outpacing arch-rival Advanced Micro Devices, Inc.’s AMD $7.4 billion. This serves as a clear indication that Intel is making strides in the semiconductor industry and is well-positioned for a comeback. Last but not least, Lip-Bu Tan’s appointment as the CEO of Intel has been well-received by market pundits, as his stint in the semiconductor industry has been productive. Tan’s initiatives to streamline operations, deliver a competitive AI platform, and spin-off assets would restore stability at Intel and help the company return to its past glory.   Is Intel Stock Worth Buying Now? With Lip-Bu Tan leading Intel’s foundry recovery and AI accelerators gaining ground among competitors through cost advantages, holding onto INTC stock seems judicious. Intel’s business revival is becoming more probable, and brokers are showing optimism by increasing the short-term price target for INTC to $22.42 (up 9.5%) from $20.48. The highest target is $62, indicating a potential 202.7% upside.   Image Source: Zacks Investment ResearchHowever, Intel’s net profit margin is negative at 36.2%, while the Semiconductor - General industries have a margin of 49.5%, suggesting financial instability due to expenses surpassing revenues. Therefore, new entrants, for now, should wait for improved financials before considering INTC stock. Image Source: Zacks Investment ResearchIntel has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks Rank #1 (Strong Buy) stocks here. Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Intel Corporation (INTC): Free Stock Analysis Report Advanced Micro Devices, Inc. (AMD): Free Stock Analysis Report NVIDIA Corporation (NVDA): Free Stock Analysis Report Taiwan Semiconductor Manufacturing Company Ltd. (TSM): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks