New York— Stocks of Intel Corporation (NASDAQ: INTC) closed higher on Monday, rising 1.6% to finish the day at $22.34. The rally adds to a modest wave of recent gains, with the stock up more than 6% over the past week. However, despite the encouraging short-term momentum, investors remain cautious as Intel continues to grapple with deeper structural and competitive challenges.
The positive session follows a stretch of consistent buying interest, offering a temporary reprieve for stockholders who have endured a sharp decline in value over the past several years. Over the past 12 months, Intel stock is down nearly 32%, and the five-year performance reflects a steep 66% loss, underscoring the company’s struggles in keeping pace with more agile semiconductor rivals.
A Company at a Crossroads
Once a dominant force in the global chip market, Intel is in the midst of a challenging transformation. Delays in chip manufacturing, missed opportunities in the artificial intelligence space, and the growing dominance of competitors like AMD, NVIDIA, and Taiwan’s TSMC have contributed to investor skepticism about Intel’s long-term viability.
The company’s ambitious plans to reinvigorate its foundry business have yet to deliver meaningful results. Intel’s foundry division remains unprofitable, and analysts suggest the company is at least two years behind TSMC in process technology. Bridging that gap could require billions in additional investment and sustained execution across multiple product cycles.
Financial Pressures Mount
Intel reported a net loss of $18.8 billion in 2024, with profit margins continuing to be squeezed. While the recent appointment of Lip-Bu Tan as CEO has sparked some optimism due to his proven track record in the semiconductor industry, the company’s turnaround strategy is still in its early phases.
Short-term price targets have seen slight upward revisions on Wall Street, but analysts remain divided on whether Intel can deliver a sustainable recovery amid a rapidly evolving chip landscape increasingly dominated by AI-focused innovation.
What’s Next for Intel?
For investors, the key question is whether the latest rally reflects a meaningful shift in sentiment—or merely a short-lived bounce. Intel’s future depends heavily on its ability to deliver new product launches on time, regain manufacturing leadership, and secure a foothold in high-growth markets like AI and advanced data center chips.
With earnings reports and strategic updates on the horizon, market participants will be closely watching for concrete signs of progress in Intel’s multi-year turnaround plan.