Intel's Stock Doubles as Government Investment Boosts Strategic Importance
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3d ago
0mins
Source: Fool
- Government Investment Impact: In August, the U.S. government purchased 433.3 million shares of Intel at $20.47 each, acquiring a 9.9% stake, and with the stock now trading above $45, this reflects the strategic importance of government backing.
- Performance Improvement: Intel reported third-quarter revenue of $13.7 billion, a 3% year-over-year increase, with a significant improvement in gross margin and a reduction in operating expenses, pushing operating margins back into positive territory, indicating a solid business recovery.
- Increased Market Confidence: Following a public endorsement from Trump after meeting with CEO Lip-Bu Tan, market sentiment for Intel has surged, driving stock prices higher and highlighting the positive impact of political support on investor confidence.
- Future Outlook: Intel expects demand to continue outpacing supply until 2026, and while challenges remain, the company's efforts to manufacture advanced chips in-house could enhance its competitive position, potentially rewarding shareholders if successful.
Analyst Views on INTC
Wall Street analysts forecast INTC stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for INTC is 35.61 USD with a low forecast of 20.00 USD and a high forecast of 52.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
34 Analyst Rating
3 Buy
25 Hold
6 Sell
Hold
Current: 44.060
Low
20.00
Averages
35.61
High
52.00
Current: 44.060
Low
20.00
Averages
35.61
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.
