What is wrong with Intel
- Lagging in AI Chip Race: Intel is behind competitors like Nvidia and AMD in AI chip innovation.
- Declining Market Share: Losing ground to Nvidia and AMD due to less competitive products.
- Reliance on CCG: Major revenue comes from Client Computing Group (desktops and notebooks), which has seen a sharp decline in sales post-COVID.
- Slow Revenue Growth: Revenue has dropped by over 30% since 2020
- Rising Debt: Debt has increased by 60% since 2020, now totaling $48 billion.
- Unprofitable Foundry: Intel’s foundry business is not yet profitable and faces strong competition from TSMC.
What is positive for Intel
Stock prediction methodology
Stock predictions are based on future growth prospects, GDP growth, sector growth potential, and applying fair valuation models based on comparative competitor analysis.
Sources of information include company financial reports, conference calls, Yahoo Finance data, and analyst reports.
These predictions are based on our own analysis. Please consult your financial advisor before making any financial decisions.
****All projected revenue, income and market cap in thousands
Intel Stock Prediction 2025,2030,2035
***All revenue, Net income and market cap are in thousands***| Year | Projected Revenue (K) | Projected Net Income(K) | Projected EPS | Projected Stock price | Projected Market Cap (K) |
|---|---|---|---|---|---|
| 2020 | $77,867,000 | $20,899,000 | 4.94 | ||
| 2021 | $79,024,000 | $19,868,000 | 4.86 | ||
| 2022 | $63,054,000 | $8,014,000 | 1.94 | ||
| 2023 | $54,228,000 | $1,689,000 | 0.4 | ||
| 2024 | $51,114,000 | $(3,000,000) | -0.70 | $20 | $85,600,000 |
| 2025 | $53,669,700 | $8,050,455 | 1.88 | $38 | $161,009,100 |
| 2026 | $56,353,185 | $8,452,978 | 1.97 | $39 | $169,059,555 |
| 2027 | $59,170,844 | $8,875,627 | 2.07 | $41 | $177,512,533 |
| 2028 | $62,129,386 | $9,319,408 | 2.18 | $44 | $186,388,159 |
| 2029 | $65,235,856 | $9,785,378 | 2.29 | $46 | $195,707,567 |
| 2030 | $68,497,649 | $10,274,647 | 2.40 | $48 | $205,492,946 |
| 2031 | $71,922,531 | $10,788,380 | 2.52 | $50 | $215,767,593 |
| 2032 | $75,518,658 | $11,327,799 | 2.65 | $53 | $226,555,973 |
| 2033 | $79,294,590 | $11,894,189 | 2.78 | $56 | $237,883,771 |
| 2034 | $83,259,320 | $12,488,898 | 2.92 | $58 | $249,777,960 |
| 2035 | $87,422,286 | $13,113,343 | 3.06 | $61 | $262,266,858 |
Conclusion -our thought
Intel’s main revenue comes from PC chips, which are expected to grow moderately at 4% or less, with tough competition from AMD in this segment.
The foundry business remains unprofitable, and Intel is less innovative compared to competitors like AMD and Nvidia.
The company’s gross margin is currently 38-40%, and net income is expected to be in the range of 15-20%, with overall revenue projected to grow at 5% in the future.
Our recommendation is to Avoid this stock until there are clear improvements in innovation and revenue growth.
