Intel (INTC) Stock Forecast & Price Target

Intel is poised for significant growth, with forecasts indicating a revenue increase to $56.01 billion over the next twelve months, driven by heightened demand in the AI segment for both PCs and data centers. The company's return on capital has improved, rising from -1.19% to 2.37%, and is expected to reach 3.30% in the next financial year, reflecting effective cost restructuring and strategic investments. Additionally, Intel's Client Computing Group revenue saw a year-over-year increase of 5% to $8.5 billion, supported by strong performance in AI-driven PC shipments, reinforcing the company's market position and long-term growth potential.

Intel's stock outlook appears negative due to several fundamental factors, including an elevated valuation alongside declining revenue estimates and increased competition across both core and non-core markets. The company's gross margin is projected to drop to 36.5% in Q4, primarily influenced by the loss of high-margin revenue and increased costs associated with new product launches, which may further strain profitability. Furthermore, Intel's revenue for the 12 months ending September 2025 decreased by 1.49%, highlighting ongoing challenges in generating sustainable sales growth amid shifting market dynamics.