Intel's Custom Chip Business Surges Amid Market Challenges
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 26 2026
0mins
Should l Buy INTC?
Source: Fool
- Massive Market Opportunity: Intel's custom ASIC business surged over 50% in 2025, with a 26% sequential growth in Q4, exiting the year with an annualized revenue exceeding $1 billion, highlighting its potential in a $100 billion market.
- Clear Competitive Advantage: Unlike competitors Broadcom and Marvell, Intel's ability to offer a combination of custom chip design, proprietary x86 technology, and in-house manufacturing services enhances its market appeal.
- Experienced Leadership: CEO Tan's successful tenure at Cadence Design Systems positions Intel to capture a larger share of the custom ASIC market, despite currently holding less than 1% market share.
- Support for Foundry Business: Winning custom chip customers will provide Intel with a steady flow of external clients for its foundry services, and while facing manufacturing capacity shortages now, the custom chip business is expected to be a key component of the company's recovery in the coming years.
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Analyst Views on INTC
Wall Street analysts forecast INTC stock price to fall
29 Analyst Rating
5 Buy
19 Hold
5 Sell
Hold
Current: 48.030
Low
20.00
Averages
39.30
High
52.00
Current: 48.030
Low
20.00
Averages
39.30
High
52.00
About INTC
Intel Corporation is a global designer and manufacturer of semiconductor products. The Company operates through three segments: Intel Products, Intel Foundry, and All Other. Its Intel Products segment includes Client Computing Group (CCG), Data Center and AI (DCAI), Network and Edge (NEX). The CCG is bringing together the operating system, system architecture, hardware, and software application integration to enable PC experiences. DCAI delivers workload-optimized solutions to cloud service providers and enterprises, along with silicon devices for communications service providers, network and edge, and HPC customers. NEX helps networks and edge compute systems from fixed-function hardware to general-purpose compute, acceleration, and networking devices running cloud native software on programmable hardware. The Intel Foundry segment comprises technology development, manufacturing and foundry services. All Other segments include Altera, Mobileye, Other.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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