One-glance verdict
Overvalued
$32.06 our estimate vs market $119.33
Wall Street consensus: $116.37 (262.9% higher than our fair-value estimate)
272% above our estimate, beyond the bull case
Fundamentals snapshot
Intel Corporation
INTC · NMS · Technology · Semiconductors
Current price
$119.33
52-week range
$32.89 - $142.35
Market cap
$630.79B
Balance sheet
Distressed
-0.02x Concerning
Net debt $20.81B. Interest coverage shows how many times profit covers the interest bill.
What stands out
2 Rewards
1 Risk
2 rewards · 1 risks
- Reward Revenue grew 7.9% last year.
- Reward Free cash flow was positive in 6/10 years.
- Risk Return on equity was -10.7% last year — the company lost money on shareholders' equity.
What this company does
Intel Corporation
Intel is a historic company that designs and builds the processors, or the "brains," for a huge number of the world's personal computers and the data centers that power the internet. While most of its revenue comes from selling its own branded chips, the company is now investing billions to also become a "foundry" (a factory-for-hire that makes chips designed by other companies). This shift is important because success would open up a massive new market for Intel, but it faces very strong competition.
How the company got here
Founded in 1968, Intel started by making memory chips but had a major breakthrough by creating the world's first microprocessor, a single chip that could function as a computer's brain. This invention was a game-changer, and Intel's processors became the standard for personal computers (PCs), especially after being chosen by IBM for its first PC. For decades, Intel dominated the market for the central processing units (CPUs) that power most of the world's computers and data centers. Recently, the company has faced more competition and is now focused on regaining its manufacturing leadership and expanding into new areas like artificial intelligence (AI) and becoming a foundry (a company that manufactures chips for other companies).
What it actually does
Intel is a technology company that designs and manufactures semiconductor chips, which are the tiny electronic components that power much of the modern world. You'll find Intel's products inside many of the laptops and desktop computers people use every day. They also make the powerful chips that run the servers in data centers, which are the engines behind the internet, cloud computing, and artificial intelligence. Beyond computers, Intel is also involved in developing technology for self-driving cars and other connected devices.
Client Computing Group (CCG)
This is Intel's largest business segment, making up more than half of its revenue. It primarily designs and sells the brains, or central processing units (CPUs), for personal computers, including both laptops and desktops. When you see an "Intel Inside" sticker on a computer, it's referring to a product from this group. The customers for these chips are the big computer manufacturers like Dell, HP, and Lenovo, who then build and sell the computers you buy in a store.
Data Center and AI (DCAI)
This is another major part of Intel's business, focused on creating powerful processors and other components for data centers. Data centers are large facilities filled with servers that store and process massive amounts of information for things like websites, social media, and online video streaming. This segment also develops specialized chips called accelerators that are designed to handle the intense calculations required for artificial intelligence (AI). The main customers are large cloud service providers and big corporations that run their own data centers.
Intel Foundry
This is a newer and growing part of Intel's business where they manufacture semiconductor chips for other companies. Think of it like a factory for hire; other chip designers who don't have their own manufacturing plants can pay Intel to produce their chips. This is a significant strategic shift for Intel, as they are now competing with other major foundries around the world. The goal is to attract a wide range of customers, from automotive companies to cloud providers, who need custom-designed chips.
What management is betting on now
Intel's current strategy, called IDM 2.0, is focused on three main goals. First, they are investing heavily to regain their position as a leader in chip manufacturing technology. Second, they are expanding their use of other companies' factories when it makes sense to improve their products' competitiveness. Finally, they are building out their Intel Foundry business to manufacture chips for other companies, which they see as a major growth opportunity. A big part of this strategy is also a major focus on the growing demand for artificial intelligence (AI) computing, from large data centers to individual PCs.
Price history
How the share price has moved
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Loading price history…
Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$-2.40B
FY2024 Q4
$-2.67B
FY2025 Q1
$-4.37B
FY2025 Q2
$-1.50B
FY2025 Q3
$121.00M
FY2025 Q4
$800.00M
FY2026 Q1
$-2.54B
FY2026 Q2
$4.45B
Revenue
$16.13B
Net income
$-11.03B
Diluted EPS
-2.16
Operating cash flow
$7.01B
Free cash flow
$4.45B
Fetching…
Sources
Revenue
$13.58B
Net income
$-3.73B
Diluted EPS
-0.73
Operating cash flow
$1.10B
Free cash flow
$-2.54B
Fetching…
Sources
Revenue
$13.67B
Net income
$-591.00M
Diluted EPS
-0.10
Operating cash flow
$4.29B
Free cash flow
$800.00M
Fetching…
Sources
Revenue
$13.65B
Net income
$4.06B
Diluted EPS
0.90
Operating cash flow
$2.55B
Free cash flow
$121.00M
Fetching…
Sources
Revenue
$12.86B
Net income
$-2.92B
Diluted EPS
-0.67
Operating cash flow
$2.05B
Free cash flow
$-1.50B
Fetching…
Sources
Revenue
$12.67B
Net income
$-821.00M
Diluted EPS
-0.19
Operating cash flow
$813.00M
Free cash flow
$-4.37B
Fetching…
Sources
Revenue
$14.26B
Net income
$-126.00M
Diluted EPS
-0.03
Operating cash flow
$3.17B
Free cash flow
$-2.67B
Fetching…
Sources
Revenue
$13.28B
Net income
$-16.64B
Diluted EPS
-3.88
Operating cash flow
$4.05B
Free cash flow
$-2.40B
Fetching…
Sources
Is it cheap or expensive?
Fair value $32.06 vs current price $119.33
Wall Street consensus is the average analyst price target: $116.37 (262.9% higher than our fair-value estimate).
Our most-likely fair value is $32.06 a share — about 73.1% below today's price of $119.33, so the stock currently looks expensive (overvalued).
Is it drowning in debt?
Distressed
Net debt $20.8B. Interest coverage -0.0x.
Net debt
$20.81B
Interest coverage
-0.02x
Intel Corporation's profit covers its interest bill about 0.0 times over. which is weaker than most peers shown here.
Distressed
Worse cushion
Baseline
Better cushion
INTC
BASELINE
Intel Corporation
Total debt $50.54B Interest coverage -0.02x This is the baseline the peer rows are being compared against.
Total debt $4.28B Interest coverage 28.20x This peer still has a real interest-payment cushion, while INTC does not.
Total debt $15.27B Interest coverage 18.67x This peer still has a real interest-payment cushion, while INTC does not.
Total debt $59.42B Interest coverage 8.12x This peer still has a real interest-payment cushion, while INTC does not.
What you should know
The case for and against INTC
2 Rewards
1 Risk
Rewards
-
Revenue grew 7.9% last year.
-
Free cash flow was positive in 6/10 years.
Risks
-
Return on equity was -10.7% last year — the company lost money on shareholders' equity.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
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Forward P/E
57.87x
P/B
6.87x
P/S
11.06x
EV/EBITDA
37.90x
PEG ratio
1.36x
Profitability
How much profit each dollar creates
Gross margin
38.9%
Operating margin
12.2%
Net margin
-19.8%
ROE
-10.7%
ROA
1.4%
Health
Liquidity and balance-sheet strength
Debt / equity
0.49x
Current ratio
1.60x
Quick ratio
1.16x
Total debt
$50.54B
Total cash
$29.73B
Growth
How the business has been compounding
Revenue TTM
$57.03B
Revenue 5Y CAGR
-9.6%
EPS TTM
-2.08
EPS 5Y CAGR
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Cash flow
How much cash the business throws off
Operating CF TTM
$14.94B
Free CF TTM
$-4.95B
FCF margin
-8.7%
Dividend
Shareholder payout
Yield
—
Payout ratio
0.0%
Last ex-div date
2024-08-07