Intel (INTC) Stock Forecast & Price Target

Intel is poised for significant growth, with expectations of strong sequential increases in its Data Center AI business as the company prioritizes high-margin server shipments. The company's Return on Capital has seen an upward trend, improving from -1.19% to 2.37%, with a forecasted further increase to 3.30% over the next twelve months, reflecting enhanced operational efficiency. Revenue for Q3 2025 grew by 3% year-over-year to $13.7 billion, driven primarily by robust AI demand across both client and data center segments, and forecasts indicate additional revenue growth as AI compute demand continues to rise along with improvements in manufacturing processes and operational structures.

Intel's stock outlook is negatively impacted by several fundamental factors, including elevated valuations alongside falling revenue estimates and heightened competition in both core and non-core markets. The company's gross margin is anticipated to decline to 36.5% in the upcoming quarter, exacerbated by the loss of high-margin revenue from Altera and increased costs associated with ramping new products and processes. Additionally, Intel's net sales revenue experienced a decline of 1.49% over the 12 months ending September 2025, highlighting ongoing challenges in maintaining sales growth amid shifting market demands.