Intel’s quarterly revenue has declined by 33% since 2021, driven largely by Apple’s transition to in-house processors and ongoing supply bottlenecks. The company reported a 4.1% year-over-year drop in Q4 revenue despite beating conservative guidance. Operating margins remain negative, with costs for research, development and capital expenditures outpacing gross profits. Competitors such as AMD have steadily eroded Intel’s share in both desktop and server markets, while TSMC’s foundry business captures growing demand for advanced process nodes.

Intel has secured $8.9 billion in government incentives to accelerate construction of two new fabrication facilities in Ohio. Management expects first wafer output from the new fabs to occur in late 2026, but has warned of further delays as it ramps high-NA EUV equipment from ASML. The company’s long-term strategy hinges on regaining process-technology leadership by 2028, with projected yield improvements on its 18 angstrom node set to drive a 5 percentage-point expansion in gross margin by 2030. Partnerships under discussion with Nvidia and Microsoft for custom foundry work could add annual foundry revenue of $2 billion by 2027.

Several sell-side firms have upgraded Intel from Hold to Buy, lifting their average 12-month target to $66.52, citing improved AI demand and potential margin tailwinds. In the latest quarter, AE Wealth Management increased its stake by 3.2%, acquiring an additional 20,072 shares to hold 656,816 shares valued at $22 million. Norges Bank initiated a new position worth $1.58 billion, while Vanguard Group boosted its holding by 2.3%. These moves reflect growing institutional confidence in Intel’s turnaround plan despite near-term headwinds.