Over the past few years, Intel (INTC) has navigated significant headwinds, from executive turnover and foundry delays to rising investor pressure, while rivals like Advanced Micro Devices (AMD) and Nvidia (NVDA) captured market‑leading gains. Yet Intel’s vast manufacturing footprint and deep R&D engine continue to anchor solid PC and data‑center demand.
Now, Intel is winding down its in‑house automotive unit and laying off most of its staff, though it will honor existing contracts. This unit, once tasked with designing vision‑processing and advanced driver‑assistance systems (ADAS) chips, struggled against leaner, more specialized competitors. Moving forward, Intel plans to rely on its equity position in Mobileye (MBLY) for autonomous‑driving exposure rather than funding its own capital‑intensive auto‑chip line.
Investors should note that exiting the auto‑chip market frees up Intel to focus on higher‑margin data centers and its growing foundry services. This strategic pivot could prompt a re‑rating of INTC shares.
Based in California, Intel is a global tech company that designs and manufactures semiconductors. It focuses on client computing, data center and AI, and foundry services. It also invests in software and autonomous‑driving technology through its stake in Mobileye. The company serves customers worldwide with its innovative chips and solutions and has a market cap of around $99 billion.
Intel shares have plunged 28% over the past year as manufacturing delays, fierce competition, and sagging PC sales eroded confidence. However, in 2025, the stock has rebounded and is up about 12% on cost cuts, AI PC momentum, and improving data center demand, among other things.
Even after the rally, Intel still trades at an attractive 1.85x forward sales, a roughly 40% discount to the 3x sector median, implying substantial upside potential if AI‑driven margin recovery and foundry growth materialize.
Intel has recently accelerated its AI push by collaborating with OEMs like HP to deliver next‑gen AI PCs, including the EliteBook X, EliteBook Ultra, and EliteBook 8, powered by Intel Core Ultra processors. These chips boost real‑world apps like Power BI and Tableau by up to 48% versus prior systems. Intel is aiming to ship over 100 million AI‑capable processors by year‑end.