Where Will Intel Stock Be in 1 Year?

Intel (NASDAQ: INTC) investors received a world cheque aft the institution released its fourth-quarter 2025 results connected Jan. 22, with the banal shedding astir 17% successful a azygous session. But it is worthy noting that the banal is inactive up by a monolithic 111% implicit the past year.

Intel banal has soared remarkably successful the past twelvemonth owed to improving capitalist confidence, which has been fueled by the company's turnaround efforts and cardinal investments from Nvidia, SoftBank, and the U.S. government. However, the company's mediocre guidance led investors to publication profits, arsenic they are astir apt disquieted astir Intel's quality to look from the rut it is successful and successfully execute its turnaround.

Where to put $1,000 close now? Our expert squad conscionable revealed what they judge are the 10 champion stocks to bargain close now, erstwhile you articulation Stock Advisor. See the stocks »

Does this mean Intel banal volition beryllium nether unit successful the coming twelvemonth and underperform the broader market? Let's find out.

Intel ended 2025 with $53 cardinal successful revenue, level from the year-ago period. Importantly, the institution swung to non-GAAP nett of $0.42 per share, compared with a nonaccomplishment of $0.13 per stock successful 2024. Intel was aiming to prevention $10 cardinal successful costs past twelvemonth by reducing its workforce.

Investors seemed blessed with this turnaround effort, particularly considering that Intel seemed primed to leap onto the artificial quality (AI) gravy bid done its concern with Nvidia and the advancement it has been making connected its precocious spot nodes. But the large leap successful Chipzilla's shares inflated its valuation.

The banal is trading astatine 88 times trailing earnings, and the guardant net aggregate of 75 isn't cheap, either. So, erstwhile Intel pointed retired that it expects to present break-even net per stock successful the existent 4th arsenic compared to a nett of $0.13 per stock successful the year-ago period, investors pressed the panic button. A year-over-year diminution successful net doesn't warrant the costly valuation Intel is trading at.

There are a mates of reasons wherefore Intel's guidance was beneath par. First, the institution is incapable to fulfill the request for its chips. Intel absorption pointed retired connected the latest net telephone that proviso constraints "meaningfully constricted our quality to seizure each of the strengths successful our underwriting markets." Intel added that the proviso challenges volition beryllium "most acute" successful the existent quarter.

Second, Intel is struggling with spot accumulation yields, which refers to the fig of functional, defect-free chips produced from a silicon wafer that tin beryllium sold to customers. This origin is weighing connected some its apical and bottommost lines. For instance, the yields connected Intel's precocious 18A process -- which is expected to assistance it vie with Taiwan Semiconductor Manufacturing -- are little than the company's expectations.