Intel Stock Price in 5 Years: INTC Shares Jump on New CEO Announcement

Key Takeaways

• Intel exceeded earnings and revenue estimates but still posted a net loss of $126 million.
• Once the undisputed leader in chipmaking, Intel struggles to compete with TSMC, Nvidia, and AMD.
• Despite facing challenges, Intel’s undervalued stock and strategic investments offer hope for a future recovery within five years.
• Shares jumped after the company named a new Chief Executive Officer.

Intel is at a crossroads. Despite surpassing earnings and revenue expectations in late 2024, the company is grappling with declining sales, mounting losses, and intensifying competition from Nvidia and AMD.

Now, with CEO Pat Gelsinger stepping down, Intel’s new leadership faces a defining challenge: navigating a high-stakes turnaround through restructuring, cost-cutting, and renewed bets on semiconductor innovation.

Intel Names New CEO

Intel has appointed Lip-Bu Tan as its new CEO, effective March 18.

Tan, a veteran technology executive with deep semiconductor experience, replaces interim co-CEOs David Zinsner and Michelle Johnston Holthaus, who stepped in after Pat Gelsinger’s departure in late 2025.

He will also rejoin Intel’s board after stepping down in August 2024.

A former Cadence Design Systems CEO, Tan brings over 20 years of semiconductor and software expertise. During his tenure at Cadence, he more than doubled revenue and drove a 3,200% stock surge.

Intel’s stock (INTC) jumped 4.6% to $20.68 ahead of the announcement, fueled by speculation. After the news was confirmed, shares spiked another 10% in after-hours trading.

Intel Beats Earnings Estimates but Issues Weak Guidance

Intel beat earnings and revenue estimates in Q4 2024 but issued disappointing guidance for the first quarter of 2025.

The company reported adjusted earnings of $0.13 per share, slightly above the expected $0.12.

Intel’s revenue came in at $14.26 billion, surpassing forecasts of $13.81 billion, though it marked a 7% decline year over year.

Despite beating estimates, Intel posted a net loss of $126 million, or $0.03 per share, compared to a $2.67 billion profit a year earlier.

This was Intel’s first earnings report since Pat Gelsinger’s departure, with interim co-CEOs David Zinsner and Michelle Johnston Holthaus leading the company.

The leadership transition comes as Intel is making strategic shifts, particularly in AI chip development. Instead of bringing its planned Falcon Shores AI chip to market, Intel will use it as a test product while shifting focus to Jaguar Shores for data centers.

For the first quarter of 2025, Intel expects revenue between $11.7 billion and $12.7 billion, falling short of LSEG’s $12.87 billion estimate. The company anticipates breaking even on profit, citing seasonality, competition, and potential tariffs as factors weighing on performance.

Intel’s PC chip division generated $8.02 billion in revenue, down 9% year over year but ahead of analyst expectations.

The Data Center and AI unit brought in $3.39 billion, a 3% decline that was in line with estimates. Meanwhile, the Network and Edge division saw revenue rise 10% to $1.62 billion, exceeding projections.

During the quarter, Intel secured a $7.86 billion U.S. government grant to support chip manufacturing across four states.

The company remains focused on expanding its manufacturing capabilities, with volume production of its 18A process technology chips set for the second half of 2025.

Additionally, its next-generation Panther Lake laptop chips are expected to launch later this year.

Despite near-term challenges, Intel continues to push forward with its AI and advanced semiconductor strategies, positioning itself for long-term growth.

Job Cuts

Intel has announced it will cut 15% of its workforce – approximately 15,000 jobs – to restructure its business and better compete with rivals like Nvidia and AMD.

In a memo to employees, former CEO Pat Gelsinger outlined plans to save $10 billion by 2025. “We must align our cost structure with our new operating model and fundamentally change the way we operate,” Gelsinger wrote.

He emphasized that revenue growth has fallen short of expectations and that the company has yet to capitalize on emerging trends like AI. “Our costs are too high, and our margins are too low,” he said.

The job cuts follow a disappointing quarter and forecast for the company. This week, Gelsinger stated that Intel will announce an “enhanced retirement offering” for eligible employees and a program for voluntary departures.

“These decisions have challenged me to my core, and this is the hardest thing I’ve done in my career,” Gelsinger said. Most of the layoffs are expected to be completed this year.

Additionally, the company will suspend its stock dividend as part of a broader cost-cutting strategy.

What Is Intel Working On?

“Intel is leading the charge in developing new semiconductor technologies, products, and solutions. It is positioning itself as a cornerstone for an increasingly smart and connected world across diverse markets,” the company states on its website.

But what exactly is the company working on?

Intel is significantly expanding its manufacturing capacity with a series of substantial investments.

These include approximately $20 billion for fabs in Arizona and New Mexico and over $20 billion for a fab in Ohio. They also include the acquisition of Tower Semiconductor.

It also plans to invest up to 80 billion euros in the European Union over the next decade, which will enhance the entire semiconductor value chain.

Despite these ambitious initiatives, industry analysts highlight that Intel may have missed out on capitalizing on the burgeoning demand for computing power driven by AI. This gap has allowed competitors like Nvidia to gain a competitive edge.

Moreover, the company has slowly adapted to the evolving semiconductor industry landscape.

Here, different stages of production—such as design, manufacturing, and packaging—have become more specialized and are often managed by separate entities.

Intel Stock in Five Years

If all goes according to plan , Intel’s foundry will generate profits within five years, and its product divisions will have recaptured some lost market share.

Should the foundry business encounter difficulties, Intel’s product units can still rely on TSMC to mitigate potential product disruptions due to manufacturing issues.

Currently valued at just $89.5 billion, its depressed bottom line suggests an overly pessimistic outlook relative to its potential.

Consider this: Intel’s price-to-book (P/B) ratio has fallen below 1, whereas foundry leader TSMC boasts a P/B ratio of around 7 . This indicates that Intel stock is about as undervalued as ever.

Intel’s strategic investments in manufacturing may take time to pay off, but long-term projections suggest a significant upside for its stock over the next five years.

The forecast indicates steady growth, with Intel stock expected to reach $22.13 by mid-2025 and end the year at $24.26, reflecting a 17% increase.

• 2026: Projected to hit $25.71 mid-year and $27.98 by year-end (+35%).
• 2027: Expected to climb to $32.37 mid-year and $37.23 by year-end (+80%).
• 2028: Forecasted at $39.61 mid-year and $44.07 by year-end (+113%).
• 2029: Estimated to reach $44.89 mid-year and $48.93 by year-end (+137%).
• 2030: Projected to $52.93 mid-year and $53.70 by year-end, marking a 160% gain from current levels.

If these trends hold, Intel could see substantial returns fueled by its expansion in semiconductor manufacturing and industry advancements.