The semiconductor industry is buzzing after Nvidia (NASDAQ:NVDA) announced it would acquire a $5 billion stake in Intel (NASDAQ:INTC). This bold move, paired with the U.S. government’s growing support, has reignited investor interest in Intel stock 2025. But is the struggling chip giant finally poised for a turnaround, or should investors remain cautious?
Why Intel Stock 2025 Is Back in the Spotlight
Intel shares surged nearly 23% on September 18, reaching a new 52-week high after Nvidia’s announcement. The purchase, priced at $23.28 per share, came as a surprise since the two companies are fierce rivals in the chipmaking industry.
Adding to the momentum, former President Donald Trump revealed in August that the U.S. government had taken a 10% stake in Intel. The funds came from unawarded grant money tied to the CHIPS and Science Act, signaling strong national interest in reviving Intel’s competitiveness in semiconductors.
These developments have turned the market’s attention back to Intel stock 2025, even as the company struggles to regain ground in artificial intelligence (AI) and advanced chip design.
Intel’s Business and Growth Challenges
Intel, headquartered in Santa Clara, California, is one of the oldest and most recognized names in the semiconductor industry. Its processors and chips power personal computers, data centers, and emerging technologies.
Recently, Intel announced a $20 billion plan to build two new factories in Ohio, though the completion date has been delayed until 2031. The company is also focusing on growth areas like AI, 5G, and autonomous vehicles to expand beyond its traditional PC market.
Despite these efforts, Intel stock 2025 reflects the company’s uphill battle. While its 52-week performance shows a gain of nearly 40%, Intel has lagged behind peers in capitalizing on the AI boom dominated by Nvidia and Advanced Micro Devices (NASDAQ:AMD).
Intel’s Financial Picture
Intel’s second-quarter 2025 results were underwhelming. Revenue came in at $12.86 billion, slightly better than analysts expected but flat year-over-year. Its gross margin fell sharply from 38.7% to 29.7%, dragged down by depreciation charges and one-time costs.
The company also slipped into the red, reporting a $0.10 adjusted loss per share compared to a $0.02 profit in the prior year. Looking ahead, Intel forecasts Q3 revenue between $12.6 billion and $13.6 billion but still expects a GAAP loss per share of $0.24.
For the full year, Wall Street anticipates Intel’s loss per share narrowing to $0.40 before turning positive in 2026 with projected EPS of $0.15.
What Analysts Say About Intel Stock 2025
Analysts remain divided on Intel’s outlook. Barclays holds an “Equalweight” rating with a $25 target, highlighting potential gains in data centers. Benchmark is more bullish, raising its rating to “Buy” with a $43 target, arguing Nvidia’s investment could restore confidence.
However, Citi has taken a bearish stance, downgrading Intel to “Sell” even while lifting its target to $29. The overall consensus among 39 analysts is a cautious “Hold,” with a median price target of $21.83—well below current trading levels.
Should You Buy Intel Stock 2025?
With Nvidia and the U.S. government both investing billions, Intel clearly has powerful backers betting on its comeback. Yet the company faces serious hurdles: declining profitability, execution delays, and stiff competition in AI chips.
For investors, Intel stock 2025 is a mixed bag. On one hand, its valuation remains attractive compared to industry averages. On the other, analysts see limited upside in the near term.
The bottom line: Intel may not be a clear “buy” right now, but its strategic importance and heavy investments make it worth keeping on the watchlist.
Featured Image: Freepik
