Managed to still be borderline profitable [Cool]
Intel’s topline has stalled, with 2025 revenue essentially flat year‑on‑year at about 53 billion dollars, highlighting weak structural growth versus peers benefiting far more from AI and advanced-node demand. Profitability remains depressed: full‑year 2025 GAAP EPS was slightly negative and operating margin stayed in the low single‑digits negative, a stark contrast to high‑margin competitors like Nvidia and AMD. Guidance for Q1 2026 implies only 11.7–12.7 billion dollars of revenue and GAAP EPS still in the red, suggesting limited near‑term earnings inflection despite cost cuts.[simplywall +3]
Intel is also in the middle of a capital‑intensive foundry build‑out while still lagging TSMC and Samsung in leading‑edge process technology and customer traction, which pressures free cash flow and keeps execution risk high. Even after the recent strategic funding for Intel Foundry, the model relies on successfully competing for external wafers in a market where TSMC holds well over half of global share. With a triple‑digit normalized P/E multiple on depressed earnings and only modest balance‑sheet strength, the stock embeds a demanding turnaround narrative that leaves downside if foundry and product roadmaps under‑deliver.
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