Now Up 70% in 2025, Is Intel Stock a Buy, Sell, or Hold for Q4?

Intel’s valuation metrics remain challenging. There is no forward price-earnings or PEG ratio currently available, underscoring the earnings volatility. The price-to-sales ratio stands at 284x, and the price-to-cash flow is at 19.36x, both slightly elevated compared to historical norms, signaling investor optimism about Intel’s restructuring and AI exposure.

It pays a quarterly dividend of $0.125 per share, which is a 1.49% forward yield. It has reduced its dividend in the past as it reflects a more conservative approach to capital return as it invests significantly in fab expansion and restructuring.

Intel recorded revenue of $12.9 billion in Q2 2025, even year-over-year (YoY) and below expectations. GAAP loss EPS amounted to a loss of $0.67 due to $1.9 billion of restructuring charges and $800 million of impairment charges. Without those charges, an itemized view of non-GAAP loss EPS of a loss of $0.10 resulted.

Ahead, guidance by management for revenue in Q3 is in a range of $12.6 billion to $13.6 billion, GAAP EPS of $(0.24), and non-GAAP EPS of breakeven. Though these results incur the cost of transformation, they also indicate that Intel is approaching the inflection point of its turn strategy.

Intel is still cutting costs relentlessly, aiming at non-GAAP 2025 operating costs of $17 billion and 2026 of $16 billion. Headcount is already down 15%, and additional capex productivity will come from scrubbed or delayed Germany, Poland, and Ohio fab expansion.

Even amid short-term pressure on earnings, longer-term opportunity for Intel is on the mend. Nvidia’s investment of $5 billion in buying into Intel’s shares—at $23.28 a pop—highlights optimism about the company’s U.S. production capacity. The alliance will have Intel produce special x86 CPUs for Nvidia’s data centers and next-generation AI-PCs’ RTX SoCs. This could make Intel a foundational pillar in AI and edge computing’s next phase of rollout.

Intel has no announcement yet of its next earnings date, but results of Q3 most probably will come in late October.

Intel earns a “Hold” rating consensus. During the last three months, a number of analysts have revised their forecast upwards, expecting a long-term revenue and margin expansion cycle as momentum picks up among its foundry wins of Intel. Intel’s consensus price target is $25.43, which would suggest upside of about 28% from current levels. The large forecast range—from a high of $43 to a low of $14—shows just how divided there is a view of Intel’s near-term execution and profitability.

On the date of publication, Yiannis Zourmpanos had a position in: NVDA. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com

Intel’s valuation metrics remain challenging. There is no forward price-earnings or PEG ratio currently available, underscoring the earnings volatility. The price-to-sales ratio stands at 284x, and the price-to-cash flow is at 19.36x, both slightly elevated compared to historical norms, signaling investor optimism about Intel’s restructuring and AI exposure.

It pays a quarterly dividend of $0.125 per share, which is a 1.49% forward yield. It has reduced its dividend in the past as it reflects a more conservative approach to capital return as it invests significantly in fab expansion and restructuring.

Intel recorded revenue of $12.9 billion in Q2 2025, even year-over-year (YoY) and below expectations. GAAP loss EPS amounted to a loss of $0.67 due to $1.9 billion of restructuring charges and $800 million of impairment charges. Without those charges, an itemized view of non-GAAP loss EPS of a loss of $0.10 resulted.

Ahead, guidance by management for revenue in Q3 is in a range of $12.6 billion to $13.6 billion, GAAP EPS of $(0.24), and non-GAAP EPS of breakeven. Though these results incur the cost of transformation, they also indicate that Intel is approaching the inflection point of its turn strategy.

Intel is still cutting costs relentlessly, aiming at non-GAAP 2025 operating costs of $17 billion and 2026 of $16 billion. Headcount is already down 15%, and additional capex productivity will come from scrubbed or delayed Germany, Poland, and Ohio fab expansion.

Even amid short-term pressure on earnings, longer-term opportunity for Intel is on the mend. Nvidia’s investment of $5 billion in buying into Intel’s shares—at $23.28 a pop—highlights optimism about the company’s U.S. production capacity. The alliance will have Intel produce special x86 CPUs for Nvidia’s data centers and next-generation AI-PCs’ RTX SoCs. This could make Intel a foundational pillar in AI and edge computing’s next phase of rollout.

Intel has no announcement yet of its next earnings date, but results of Q3 most probably will come in late October.

Intel earns a “Hold” rating consensus. During the last three months, a number of analysts have revised their forecast upwards, expecting a long-term revenue and margin expansion cycle as momentum picks up among its foundry wins of Intel. Intel’s consensus price target is $25.43, which would suggest upside of about 28% from current levels. The large forecast range—from a high of $43 to a low of $14—shows just how divided there is a view of Intel’s near-term execution and profitability.

On the date of publication, Yiannis Zourmpanos had a position in: NVDA. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com