Should you be buying Intel stock?

Roth Capital Markets analyst Suji Desilva raised his target price on Intel (Intel Corporation Stock Quote, Chart, News, Analysts, Financials NASDAQ:INTC) to US $40.00 from $30.00 while maintaining a “Neutral” rating in an Oct. 24 earnings analysis, citing recovering revenue trends and progress on the company’s manufacturing roadmap.

Desilva said Intel’s third-quarter 2025 results reflected a “seasonally recovering” demand environment across both client and data centre markets, with revenue of US$13.7-billion, up 6.2% quarter over quarter and 3% year over year, ahead of consensus at US$13.2-billion.

“We are encouraged that Intel’s manufacturing roadmap improvements are supporting both strategic partnerships and funding sources,” he said. “Further recovery progress is needed in order for us to become more constructive on the name.”

Intel’s products segment rose 7.1% quarter over quarter, led by Client Computing Group (up 8.4%) on the strength of notebook refreshes and the ramp of AI-enabled PCs. Data Center and AI revenue increased 4.5%, rebounding from prior-quarter weakness. The Intel Foundry segment declined 4.1% due to constrained supply of the INTC7 node, which Desilva said is expected to persist. Gross margin improved to 40%, and earnings per share of US$0.23 topped Street estimates, reflecting stronger revenue and margin performance.

Looking ahead, Intel guided fourth-quarter revenue of US$12.8–13.8-billion, representing a 3–6% sequential decline, in line with consensus expectations of US$13.4-billion. Desilva said the outlook reflects post-summer seasonality but emphasized that Intel’s improving process technology, product refresh cycles, and AI-related opportunities should support ongoing recovery.

“We are encouraged by Intel’s recovering manufacturing process and newer products, helping drive client notebook upgrade cycles and increased AI data center opportunity,” Desilva said. “We believe recent funding and key divestitures are helping improve the company’s financial position.”

He added that Intel’s ongoing cost restructuring and its pursuit of large strategic partners to co-finance fabrication expansions “should help support profitability as revenue steadily recovers.”

-30-