When the stock market falters, some investors grab stress balls, others grab spreadsheets, and there are others who turn on CNBC, hear “Intel,” and suddenly think they’ve unlocked the next AI goldmine. Intel, the old chipmaker with a resume quite older than most crypto bros, is back in the limelight, but is it actually the best high-volume purchase in town or simply riding its legacy reputation?

On a recent visit to CNBC’s Squawk Box, BMO’s Chief Market Strategist Carol Schleif gave some context to the market’s mood in response to volatility. Despite the April pullback, which temporarily approached a 20% decline, the market regained and closed merely at 3-4% behind. According to Schleif, Investor responses were not by any means one-dimensional, where10% were more than willing to “buy the dip,” the other 10% held back, and the majority remained positively skeptical.

Schleif also pointed to the increasing significance of diversified portfolios, particularly those that extend beyond the U.S market. She advised to welcome global exposure and mix equities with fixed income to survive volatility, a particularly timely reminder for anyone considering stocks like Intel.

Intel’s Strong Foundation & Irregular Results

Intel, the admired giant of the semiconductor industry, is now in the spotlight both for its promise and its problems. The firm, which makes everything from CPUs to edge-computing platforms tailored to AI and cryptography, experienced a fairly rocky Q1 2025.

Its Intel Products group generated $11.8 billion in revenue with a down of 10% sequentially. Within that, the Client Computing Group’s performance fell 13%, dragged by market headwinds despite its more than anticipated volume. Although, all was not miserable. Its Data Center & AI group performed better than expected, lifted by hyperscaler demand for host CPUs in AI servers and storage devices. Intel is now changing gears to double down on AI innovation, positioning its platforms to catch the rising tide of AI agents and automation.

Strategic Maneuvers

Bernstein SocGen last changed its price target for Intel, lowering from $25 to $21, with a Market Perform rating intact. The company expects near-term growth in PC demand through the first half of 2025 but is calling for a decline in the second half as consumer demand might slow. Even after the reduction, Intel is still among the leading high-volume stocks on the analysts’ list. It sits at number 6 on a top list of high-volume choices and continues to enjoy its strategic shift to AI and infrastructure-driven computing.

Though Intel’s fundamentals are still fairly solid and its AI plan promising, most investors now balance its long-term picture with the explosive (if sometimes volatile) potential of newer, more-pure-play AI stocks. Some of the AI stocks have stumbled in early 2025, declining as much as 25%, but some have posted above-average returns, trading at very low multiples as they ride the wave of AI adoption.

Intel’s fundamentals remain decent, and its shift towards AI is more tactical than hype-driven. In the high tech world of today, “decent” doesn’t always suffice. While Intel is still a good bet for investors who value stability and slow-burn growth, it might not have the speed to excite those seeking short-term thrills. If one is looking for solid exposure to semiconductors with a dash of innovation, Intel delivers. If one’s portfolio requires breakout potential, there can be younger AI challengers that are more capable of sprinting to the next lap of this digital race.