One-glance verdict
Overvalued
$33.21 our estimate vs market $91.69
Wall Street consensus: $117.14 (252.7% higher than our fair-value estimate)
176% above our estimate, beyond the bull case
Fundamentals snapshot
Intel Corporation
INTC · NMS · Technology · Semiconductors
Current price
$91.69
52-week range
$32.89 - $142.35
Market cap
$484.71B
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 makes computer chips that power everything from laptops to big servers, with most of its money coming from selling these chips to other companies that build computers and data centers. This matters because Intel's chips are crucial for the technology we use every day, and when they do well, it means the technology world is humming along.
How the company got here
Intel was founded in 1968 by Gordon Moore and Robert Noyce, pioneers in semiconductor technology. Initially, the company focused on memory chips, but it pivoted to microprocessors in the early 1980s, becoming a dominant force with the rise of personal computers. This strategic shift, coupled with continuous innovation in chip design and manufacturing, cemented Intel's position as a leader in the technology industry for decades. The company's early success was instrumental in the growth of Silicon Valley as a global tech hub.
What it actually does
Intel designs, manufactures, and sells computer processors and related components. These are the "brains" of computers, powering everything from laptops and desktops to servers in data centers. Think of the Intel Core processors you might see advertised for personal computers, or the more powerful Intel Xeon processors used in servers that run websites and cloud services. Beyond processors, Intel also produces chipsets, graphics processors, and other components essential for modern computing devices.
Client Computing Group (CCG)
This segment is Intel's largest, focusing on processors and related products for personal computers. This includes the popular Intel Core processors found in many laptops and desktops, as well as components for commercial PCs and edge computing devices. Essentially, this is the part of Intel that powers the everyday computers many people use for work, school, and entertainment. It represents the largest portion of Intel's revenue, making it a cornerstone of the company's business.
Data Center and AI (DCAI)
The Data Center and AI group designs processors and other components for servers and data centers. These are the powerful computers that run cloud services, store vast amounts of data, and power artificial intelligence (AI) applications. As businesses increasingly rely on cloud computing and AI, this segment is crucial for Intel's growth, providing the essential hardware for these demanding workloads. This segment is a significant contributor to Intel's overall revenue.
Intel Foundry Services (IFS)
This segment represents Intel's move into offering its manufacturing capabilities to other companies. Think of it like a factory that builds chips not just for Intel, but also for other businesses that design their own chips but don't have their own factories. This is a strategic area for Intel as it aims to become a major player in the global chip manufacturing market, diversifying its revenue streams beyond its own product lines. While historically a smaller part of the business, it is a key focus for future growth.
What management is betting on now
Intel is undergoing a significant transformation, shifting from being solely a designer of its own chips to also manufacturing chips for other companies (Intel Foundry Services). Management is focused on strengthening its core businesses, extending its reach into new markets, and redefining its position in the industry. This includes heavy investment in advanced manufacturing technologies and a multi-architecture approach to chip design (moving beyond just CPUs to other types of processors). The company is also prioritizing operational discipline and cost reductions to improve profitability.
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 $33.21 vs current price $91.69
Wall Street consensus is the average analyst price target: $117.14 (252.7% higher than our fair-value estimate).
Our most-likely fair value is $33.21 a share — about 63.8% below today's price of $91.69, 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)
—
Forward P/E
43.11x
P/B
5.28x
P/S
8.50x
EV/EBITDA
28.21x
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
-2.12
EPS 5Y CAGR
—
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
0.0%
Payout ratio
0.0%
Last ex-div date
2024-08-07