Should you sell your Intel stock?

In a July 25 update, Roth Capital Markets analyst Suji Desilva said Intel (Intel Corporation Stock Quote, Chart, News, Analysts, Financials NASDAQ:INTC) delivered relatively strong Q2 2025 revenue but guided to a softer second half, citing tariff-related customer pull-ins. He raised the firm’s price target from $20 to $22 but kept a “Neutral” rating, noting that the company remains in transition.

“While company margins remain below target, we believe improving manufacturing costs through ramp of newer nodes will be key to recovery,” he said. “We are encouraged that under new management, INTC is focusing on a more comprehensive AI strategy, target improved return on manufacturing capital investment, and beginning the process of de-levering the balance sheet.”

Desilva said Intel’s second-quarter 2025 revenue came in at $12.9-billion, up 1.5% from the previous quarter and flat year-over-year, surpassing the $12.0-billion consensus estimate. He attributed the beat to stronger-than-expected demand across client and data center segments. The Client Computing Group rose 3.2% quarter-over-quarter, benefiting from notebook refresh cycles and early adoption of AI PCs. While Data Center and AI revenue declined 4.5%, results still exceeded internal forecasts, despite fluctuations in hyperscale spending. Intel Foundry revenue fell 5.4% due to limited INTC7 node supply, which is expected to persist. Gross margin was 29.7% on a reported basis but adjusted to 37.5% after accounting for write-downs and accelerated depreciation. Adjusted EPS was $0.10, versus a reported loss of $0.10.

“We are encouraged by new management’s shift in focus to improve both product development efforts and return on manufacturing investment in the coming years,” Desilva said. “Specifically, as INTC advances to newer INTC14A manufacturing over the next few years, management does not believe that internal products alone can justify the investment. As such, offering foundry services is a significant focus with customer commitments justifying INTC14A foundry capacity investment.”

He said the INTC14A process node was developed from the ground up for external foundry customers, and Intel’s own internal product lines are being adapted to align with a somewhat different architecture.

“We believe improved capital efficiency can also support the important effort to de-lever from the current high debt load supported by the company,” he said.

-30-