Semiconductor stocks have long rewarded investors who spot the next big shift early, whether it was smartphones a decade ago or artificial intelligence more recently. But not every chip company has benefited equally from the AI wave, and some legacy names have struggled to keep pace with faster, newer rivals.
That’s why Intel (INTC) suddenly finds itself back in the spotlight. Late last week, INTC stock jumped about 10% after TF International analyst Ming-Chi Kuo predicted that Intel could supply Apple (AAPL) with M‑series chips by 2027. Traders cheered the rumor, as any Apple contract would be huge PR, and even suggested it “validates Intel’s high-performance foundry offering.” However, Kuo cautioned that initial volumes would be very small “table scraps,” with no material impact on Apple’s main supplier, TSMC (TSM).
For now, it’s just talk, but if Intel can pull off even a partial return as an Apple supplier, it could signal that its foundry strategy is gaining traction and potentially open the door to much larger wins down the road.
About INTC Stock
Based in Santa Clara, Intel is one of the world’s largest semiconductor companies, famous for its x86 PC and server processors. The chipmaking company also builds networking chips and GPUs and, in recent years, has been expanding U.S. chip factories under the CHIPS Act of 2022. Under new CEO Lip-Bu Tan, it’s pivoting toward AI accelerators and beefing up its foundry business alongside its core CPU lines.
Valued at $190 billion by market cap, 2025 has been a wild year for INTC stock. After bottoming near the mid-$17s in April, the stock has doubled year-to-date (YTD), driven by AI excitement, big partnerships (e.g., Nvidia (NVDA) and SoftBank (SFTBY) investment), and now the Apple rumor. Moreover, the stock is currently trading near a 52-week high. This rally far outpaces Intel’s largely flat performance in prior years, reflecting renewed optimism that Intel’s turnaround is real and that its new factories and products will fuel growth.
Intel’s stock is not “dirt cheap” even after this run. On a forward basis, its P/E is sky-high. Wall Street expects roughly $0.56 EPS in 2026, which at a $40 stock price implies a forward P/E on the order of 70x, far above typical semiconductor valuations. In contrast, if we look at its price/book metrics, they look more reasonable. Intel’s price-to-tangible-book is around 2.4x versus the industry median of 2.8x, suggesting the stock isn’t egregiously rich on a per-share asset basis. In short, one metric makes Intel look quite expensive, while another is roughly in line with peers.
Apple Deal Implications
While there is no confirmation that Intel will regain Apple’s business, a credible industry report suggests such a move is being explored. So landing even a small Apple contract would be a big legitimacy boost for Intel’s foundry business.
Analysts note that having Apple as a customer could “enhance Intel’s credibility as a long-term alternative to TSMC,” validating years of costly factory investments. It would also dovetail with U.S. policy, since Trump’s administration has urged more domestic chip production.
On the other hand, skepticism is warranted. Intel is still behind TSMC on leading-edge node technology, and Kuo stressed any Apple order would be modest “table scraps” rather than a game-changer. Intel must execute perfectly; its next-gen 18A process design kit needs to be ready by early 2026 to hit a 2027 delivery schedule. That timeline is tight. So, the Apple rumor is potentially bullish for Intel’s reputation, but it may also be just hype without guaranteed results.
Intel Delivered Blowout Q3
Intel is still in the middle of rebuilding its business after several difficult years, but recent results show signs that the turnaround effort is gaining some traction.
The chipmaker’s most recent quarter delivered better results than many on Wall Street were expecting. Revenue came in near $13.7 billion, up about 3% from a year earlier and slightly ahead of market forecasts around $13.1 billion.
More importantly, Intel swung back to profitability. The company reported GAAP net income of about $4.1 billion, compared with a large loss in the same quarter last year. Earnings per share were $11, beating estimates by 200%. It marked Intel’s first profitable quarter after six consecutive losses.
Margins also recovered. Operating income turned positive with margins near 5%. Free cash flow was modestly positive at roughly $900 million, while operating cash flow reached about $2.5 billion. Intel finished the quarter with around $11.1 billion in cash and equivalents, up from roughly $8.8 billion a year earlier.
Looking ahead, Intel guided for Q4 revenue between $12.8 billion and $13.8 billion, with GAAP earnings expected near break-even and adjusted profit slightly positive.
Analyst Views on INTC Stock
Wall Street’s analysts are all over the map on Intel. Some have become more bullish, like Morgan Stanley’s Joseph Moore, who kept an “Equal-Weight” rating but raised his 12-month target from $23 to $36, which shows optimism that Intel’s turnaround is underway.
Others remain skeptical. Goldman Sachs’ Toshiya Hari cut his target to just $18 and reiterated a “Sell,” arguing Intel still needs to prove stable data center share and rising profits before the stock can rally sustainably.
Rosenblatt likewise stayed cautious. It lifted its target only to $25, maintaining a “Sell” rating, praising Intel’s “solid progress” but warning the stock now looks expensive.
In aggregate, analysts’ 12-month targets currently average around $36 and are still far below Intel’s current price, and the consensus rating is “Hold.”
So the takeaway is clear that expectations are high but not unanimous, so opinions range from “Intel’s turnaround is real” to “Caution, this could be a sell-the-news moment.”
On the date of publication, Nauman Khan did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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