Intel’s stock plunged 70% compared to its 2021 peak. This is why this giant of fallen technology could be the good matter of semiconductors that no one looks in in 2025.
Intel (Intc 5.35%)) Previously, the 800 pound gorilla from the semiconductor industry. Nowadays, the company formerly known as Chipzilla has lost market share in its most important divisions and has missed the bus for the boom of artificial intelligence (IA). At the same time, Intel looks at its relatively new flea manufacturing with revenge.
Can the Intel update strategy compete in recent years in recent years? Is the stock ready for a turnaround in the next year or two? In short, is Intel Stock a good purchase at the moment?
Discover.
The bet of $ 50 billion that frightened investors
Intel’s stock has been struggling for a few years. The share price culminated at a top of two decades in April of the same year, before starting a long and painful slowdown. The dive started with the Q1 2021 report of Intel, where the company crushed Wall Street estimates, but also revealed its brand new foundry foundry.
It is fair to say that the so-called foundry company was controversial from the start. The company has spent more than $ 50 billion for new and improved flea manufacturing facilities in the past two years.
These infrastructure costs scare many Intel potential investors. The division of funds does not even make profit yet, and it faces enormous competition from its firmly established competitors Manufacture of Taiwan semiconductors (TSM 2.33%)) And Samsung (Ssnl.f 9.01%)). What if the massive investment in Intel’s strategy turns out to be a dead end?
This is the main reason why Intel’s actions fell 70% compared to the April 2021 summit. Even the geneal update of the AI cannot compensate for this expensive idea in the average spirit of Intel shareholders. IA Intel Gaudi line can compete with Nvidia‘s (NVDA 0.10%)) Standard industry maps being much cheaper, allowing systems manufacturers to wrap much more accelerators in each AI system. Costauded electricity bills and stimulated system cooling concerns can undermine the advantage of Intel cost, using this approach.
Intel’s new identity: a flea manufacturer to hire
An intel investment in 2025 is therefore a fairly direct long -term bet on the Foundry Sector of Flea Fact. Long -standing challenger Advanced micro-apparents (AMD 1.35%)) Stole Intel thunder on the markets of the central processor unit (CPU) for PC systems and servers. NVIDIA fled with the AC Accelerators market, followed by a large package of hungry people. A turnaround is always possible, but it is not even what Intel is working on today.
On this note, I think it is important to understand the ambition to make Intel chips. This market has been dominated by Taiwan semiconductors for decades, with Samsung more recently entering the large-scale arena. The two companies are based in Southeast Asia, conveniently close to technological manufacturing centers in China and Taiwan. But this geographical concentration turns into responsibility in 2025, because Chinese-American trade tensions continue to evade.
Intel could therefore become the best supplier of American flea designers. Most of the company’s flea creation facilities are dispersed in the United States, with large manufacturing campuses in places like Arizona and Oregon. The sending of flea orders to these installations will help national semiconductor companies (and their customers in creating aircraft) to avoid prices and commercial restrictions on processors carried out abroad.
It is not even a new development. The Intel Foundry Plan was launched four years ago, in the middle of the shortage of manufacturing of chips focused on coronavirus and an earlier version of today’s amplified commercial conflicts.
Image source: Getty Images.
Intel could be the best semiconductor agreement of 2025
I cannot promise that Intel’s foundry idea will work in the long term. However, the semiconductor veteran has too much long-term expertise and too much money invested to take a bad turn here.
And the stock is at the cost of an absolute disaster. Intel actions change hands to 1.7 times sales and 0.9 times the accounting value of the company. It is a territory of baccalaureate in good deal compared to the rivals closest to Intel:
|
Semiconductive stock |
Price for sales (P / S) |
Price to reserve (p / b) |
Market capitalization |
|---|---|---|---|
|
Intel |
1.7 |
0.9 |
88.3 billion dollars |
|
Dmla |
6.9 |
3.3 |
192.3 billion dollars |
|
Taiwan semiconductor |
10.9 |
7.6 |
$ 1,049.6 billion |
|
Nvidia |
23.3 |
41.3 |
3,462.9 billion dollars |
Data from Finviz.com on June 4, 2025.
I am particularly intrigued by the price of Rock-Bas from Intel to the accounting value. A figure less than 1.0 suggests that investors could be better served if the company simply closed its operations, sold all the assets and returned this species to the shareholders instead. The tax effects would make it an ineffective release strategy in most cases, but you have the idea – many investors have just given up the hope of Intel.
And I think it’s a short view of the Intel update strategy. In short, Intel’s actions resemble an excellent purchase of these courses of low shares.
Anders Bylund has positions in Intel and Nvidia. The Motley Fool has positions and recommends advanced micro-apparently, Intel, Nvidia and Taiwan Semiconductor Manufacturing. The Motley Fool recommends the following options: Court August 2025 $ 24 calls Intel. The Motley Fool has a policy of disclosure.
