The market has not been very kind to Intel stock and analysts have not been optimistic about the company’s chances of recovery. Despite indicating that, a turnaround has already set in with new CEO Lip-Bu Tan. The majority of analysts think that it is still too early to get hopes that the bank is on a full recovery. Stocks are down about 43% in the last year and despite a few positive news stories analysts expect most investors to remain on the sidelines. Wells Fargo, in one instance did not change their rating of Intel stock which stands at an equal weight with a price target of 22.
According to the analysts of the bank, a significant question mark over the recovery of loss on gross margin which is a real issue as well as the threatened competition of firms such as AMD or Arm poses a question mark over the future of Intel.
Casting Ambitions Still in a State of Doubt
Intel is striving to inject life into its foundry business which has not been competitive in the world market. The 18A process that the company has adopted is perceived to form a significant portion of this initiative and any developments in this regard are believed to drive a turnaround. But when such new products will hit the shelf like the 18A-based Diamond Rapids Xeon CPU, is unclear.
Another bigger chip using 18A, Panther Lake is scheduled to launch later in the year although the larger-scale introduction is not meant to occur until the first half of 2026. Once these chips become completely available and prove to perform well then analysts are of the mind that the foundry objectives of Intel may still be at stake.
AMD and Arm Making Headway on Home Turf
It is estimated that client computing continues to contribute approximately 60% of Intel’s revenues. Competitors are also catching up at a rapid rate which is unfortunate for the company. The new 2nm Zen 6 EPYC platform of AMD is likely to continue boosting market share throughout the second half of 2025 and into 2026.
Wells Fargo noted that Intel must demonstrate its ability to stabilize its market share in the server CPU but at the moment AMD keeps chalking up advantages. Moreover, Arm-based architectures are causing a new problem particularly in mobile and energy efficient computing markets.
Analysts: A Long Process with No Shortcut
A number of analysts have clarified that reversing Intel will be time-consuming. Bernstein said that the task of putting Intel in order was an unbelievable work and even Hercules would require more than a day to correct Intel. Rasgon observed that although the company is in the process of trying to change company culture and be less costly through the managing CEO, Tan, there were no magic bullets.
One such Evercore ISI analyst was Mark Lipacis, who added that Intel was like an immense battleship; it could not be turned around fast. He believed in the strategy that Tan has to flatten the organization and concentrate on the customers but mentioned that it is still too early to be optimistic.
Positive but No Bullish Calls Just Yet
In spite of all these issues, confident analysts tend to be optimistic that Intel has taken a realistic approach by being conservative in terms of financial plans. Yet, they add that improvement of the performance of the product and of the market share must be witnessed before tagging the stock as recommendable. A majority of major brokerages have either a hold or an in-line rating on Intel, of which most target prices are in the low 20s.
Blayne Curtis an analyst at Jefferies put it best by saying even though the leadership change and the cost-cutting are positive there is not much to get enthusiastic about on either the product or financial fronts.
It is a Long Road Not Over Yet
Intel is undergoing a significant shake-up. The company is struggling to restore its image market hold and be at the forefront of chip technology. Positive initial initiatives by CEO Tan augur well but there is still a long journey with an uncertain future. Most investors and analysts are not expected to change and become bullish on Intel until the company criticizes actual progress in products and finances.
