Is Intel Stock A Buy Now?

Intel (NASDAQ:INTC) stock increased almost 7% on Tuesday, despite the absence of significant stock-specific news to justify such a significant movement. The overall semiconductor sector has been on an upward trend in recent weeks, and Intel stock, which is still down around 32% over the previous year, may be attracting investor interest as a possible rebound opportunity. The surge could also be partially driven by short covering, considering the magnitude of the increase. Meanwhile, Bloomberg has reported that Intel is laying off over 500 employees in Oregon as part of a broader restructuring initiative aimed at cutting costs. The stock has experienced pressure over the past year because of considerable spending on its foundry operations and ongoing market share losses in the PC and server segments to competitors like AMD.

Our assessment of Intel based on key metrics of Growth, Profitability, Financial Stability, and Downturn Resilience indicates that the company exhibits weak operating performance, as detailed below. However, if you’re looking for upside with less volatility than individual stocks, the Trefis High Quality portfolio offers an alternative, having outperformed the S&P 500 and achieved returns exceeding 91% since its inception.

How Does Intel’s Valuation Compare to The S&P 500?

According to the price you pay per dollar of sales or profit, INTC stock appears inexpensive compared to the wider market.

• Intel possesses a price-to-sales (P/S) ratio of 1.8, compared to a figure of 3.1 for the S&P 500

How Have Intel’s Revenues Changed in Recent Years?

Intel’s Revenues have decreased over the last few years.

• Intel has experienced its top line decline at an average pace of 11.2% over the past 3 years (compared to an increase of 5.5% for the S&P 500)
• Its revenues have dropped 4.0% from $55 Billion to $53 Billion in the last 12 months (against a growth of 5.5% for the S&P 500)
• Additionally, its quarterly revenues contracted 0.4% to $13 Billion in the most recent quarter from $13 Billion a year prior (compared to a 4.8% improvement for the S&P 500)

How Profitable Is Intel?

Intel’s profit margins are significantly lower than most companies in the Trefis coverage universe.

• Intel’s Operating Income over the past four quarters amounted to $-4.1 Billion, reflecting a very poor Operating Margin of -7.8%
• Intel’s Operating Cash Flow (OCF) during this period was $10 Billion, indicating a moderate OCF Margin of 19.5% (compared to 14.9% for S&P 500)
• For the last four-quarter span, Intel’s Net Income was $-19 Billion – representing a very poor Net Income Margin of -36.2% (versus 11.6% for S&P 500)

Does Intel Appear Financially Stable?

Intel’s balance sheet appears healthy.

• Intel’s Debt stood at $50 Billion at the conclusion of the most recent quarter, while its market capitalization is $102 Billion (as of 7/8/2025). This indicates a poor Debt-to-Equity Ratio of 52.5% (versus 19.4% for the S&P 500). [Note: A low Debt-to-Equity Ratio is preferable]

• Cash (including cash equivalents) accounts for $21 Billion of the $192 Billion in Total Assets for Intel. This translates to a strong Cash-to-Assets Ratio of 10.9%

How Resilient Is INTC Stock During Downturns?

INTC stock has performed worse than the benchmark S&P 500 index during several recent downturns. Concerned about the influence of a market crash on INTC stock? Our dashboard How Low Can Stocks Go During A Market Crash shows how key stocks performed during and after the last six market crashes.

Inflation Shock (2022)

• INTC stock fell 63.3% from a peak of $68.26 on April 9, 2021, to $25.04 on October 11, 2022, compared to a peak-to-trough decline of 25.4% for the S&P 500
• The stock has yet to regain its pre-Crisis high
• The highest price the stock has achieved since then is 50.76 on December 27, 2023, and it currently trades at approximately $24

Covid Pandemic (2020)

• INTC stock fell 34.8% from a peak of $68.47 on January 24, 2020, to $44.61 on March 16, 2020, compared to a peak-to-trough decline of 33.9% for the S&P 500
• The stock has yet to recover to its pre-Crisis high

Global Financial Crisis (2008)

• INTC stock fell 56.8% from a peak of $27.98 on December 6, 2007, to $12.08 on February 23, 2009, compared to a peak-to-trough decline of 56.8% for the S&P 500
• The stock fully recovered to its pre-Crisis peak by March 26, 2012

Bringing Everything Together: Implications for INTC Stock

In conclusion, despite Intel’s low valuation and relatively stable balance sheet, there are some concerns regarding the stock, due to the company’s recent revenue decline and weak margins. While it may be wise to be cautious with INTC stock for the time being, you might consider exploring the Trefis Reinforced Value (RV) Portfolio, which has outperformed its all-cap stocks benchmark (a combination of the S&P 500, S&P mid-cap, and Russell 2000 benchmark indices) to deliver strong returns for investors. What is the reason for this? The quarterly rebalanced blend of large-, mid-, and small-cap RV Portfolio stocks provided a flexible strategy to capitalize on favorable market conditions while minimizing losses when markets decline, as detailed in RV Portfolio performance metrics.