Intel (INTC) Stock Forecast & Price Target

Intel's outlook remains positive, underpinned by a projected significant increase in revenue, anticipated to grow by 4.81% to $56.01 billion over the next twelve months, driven by robust demand for AI in both PC and data center markets. The company has also demonstrated improvements in Return on Capital, with an increase from -1.19% to 2.37% over the last twelve months, and forecasts further growth to 3.30%, reflecting enhanced operational efficiency and profitability. Additionally, progress in its manufacturing capabilities, coupled with strategic supply agreements and a restructured cost base, positions Intel for sustained growth as it expands its foundry services and transitions to breakthrough process nodes.

The financial analyst observes a negative outlook for Intel's stock stemming from several key factors: an elevated valuation in the face of falling revenue estimates, intensifying competition across various markets, and the expectation of limited revenue contributions from Intel Foundry in the near term. The company's gross margin is projected to decline to 36.5% in Q4, largely due to the loss of Altera's high-margin revenue and increased costs related to new product introductions. Furthermore, for the 12 months ending September 2025, Intel experienced a 1.49% decrease in net sales revenue, reflecting a broader trend of declining performance.