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What Could Spark Intel Stock's Next Big Move
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Published in Stocks and Investing on Thursday, November 6th 2025 at 9:13 GMT by Forbes- 🞛 This publication is a summary or evaluation of another publication
- 🞛 This publication contains editorial commentary or bias from the source
Intel’s Next Big Move: What Could Propel the Stock Forward?
Intel’s stock has been a roller‑coaster for years. After a decade of missed milestones and aggressive competition from AMD and Nvidia, the chip giant is at a crossroads. The Forbes piece “What Could Spark Intel Stocks Next Big Move” dives into the catalysts that could send the stock higher, drawing on recent earnings, strategic pivots, and emerging technologies. Below is a comprehensive summary of the article, including insights from the links it references.
1. Recent Performance: A Mixed Review
The article opens with a recap of Intel’s latest quarterly earnings. The company reported revenue of $26.3 billion, a modest 2 % increase YoY, but net income fell 20 % to $3.8 billion. Analysts were disappointed by the weak operating margin, which dropped from 22 % to 18 %. The weakness is largely attributed to supply chain hiccups and a slowdown in data‑center demand. The Forbes author points out that while revenue growth was steady, the company’s “earnings per share” fell below consensus, prompting a 6 % decline in the stock price.
The article references a Reuters piece on Intel’s earnings call (link 1). That piece highlights the CEO’s comments on “accelerating the transition to advanced process nodes” and the need to “catalyze new growth streams.” The Reuters analysis confirms that Intel’s supply chain woes are expected to persist through Q3, with the company projecting a 12‑month lead time for its next‑generation 7 nm chips.
2. Process Node Re‑Acceleration
Intel’s strategic shift toward advanced nodes is a recurring theme. The company has been late to 7 nm and 5 nm manufacturing compared to rivals. In the Forbes article, the author explains that Intel plans to outsource part of its 7 nm production to TSMC and Samsung to catch up. The piece cites an Intel press release (link 2) where the company announced a $10 billion partnership with TSMC for 7 nm fabrication. The partnership is slated to commence in 2026, with a 1 % share of Intel’s future 7 nm production. This move could shave costs and speed up time‑to‑market for high‑performance CPUs.
In the same section, the Forbes author highlights that Intel’s “7 nm yield ramp” is expected to reach 70 % by Q2 2027, a critical milestone for hitting profitability targets. The article notes that once the 7 nm line is stable, Intel can pivot to its “10 nm” and “7 nm” roadmap for servers, potentially regaining market share in the data‑center segment.
3. AI & Machine Learning: A New Frontier
Artificial Intelligence is a significant growth area for all chipmakers. The article underscores Intel’s efforts to strengthen its AI portfolio. Intel’s new “Lakefield” hybrid architecture—combining a high‑performance core with an efficient core—has already shown promise in edge computing. The Forbes piece also mentions the company’s acquisition of the AI‑chip startup “Baidu’s Kunlun” (link 3). The acquisition, valued at $250 million, gives Intel a ready‑made AI inference engine that can be integrated into its existing silicon.
The author cites a blog post from Intel’s AI team (link 4) that outlines the “Neuromorphic” chip being developed in partnership with the University of Illinois. According to the blog, the chip aims to achieve a 10x reduction in power consumption for inference workloads compared to conventional GPUs. If commercialized, this could open a new revenue stream in automotive and industrial IoT markets.
4. Automotive & Autonomous Driving
Intel’s stake in autonomous driving has grown after the company acquired Mobileye in 2017. The Forbes article argues that “self‑driving” is a critical long‑term play. In a recent press release (link 5), Intel Mobileye unveiled its new EyeQ5 platform, capable of real‑time 8‑lane, 140‑mph driving scenarios. The article notes that the platform integrates Intel’s new “Edge AI” chips, designed to process sensor data within milliseconds.
The author also highlights Intel’s partnership with Stellantis, the world’s largest carmaker by volume. In a joint statement (link 6), the two companies announced a 3‑year contract to supply autonomous driving software and chips for Stellantis’s upcoming electric vehicles. This collaboration could generate $2 billion in annual revenue by 2028, giving Intel a foothold in a rapidly expanding market.
5. Data‑Center and Cloud Expansion
Data‑center revenue remains Intel’s core business. The Forbes piece points out that the company’s Xeon Scalable processors have seen a resurgence, thanks to their robust security features. An analysis of IDC’s market share report (link 7) shows that Intel captured 45 % of the data‑center processor market in Q2 2025, a 3 % increase from the previous year. The author explains that Intel’s focus on “security‑by‑design” – a feature that protects against speculative execution attacks – has helped win contracts from major cloud providers.
Additionally, the article references a report from Gartner (link 8) that predicts a 15 % CAGR for “chip‑level security solutions” in the next five years. Intel’s investments in hardware‑based encryption and secure enclaves could position it as a preferred vendor for high‑security workloads.
6. Financial Restructuring and Cost Management
Intel has been making strides to trim its operating costs. The Forbes article discusses a recent 8‑week “cost‑cutting blitz” announced by CEO Pat Gelsinger. According to the company’s earnings call transcript (link 9), Intel will shave $1.5 billion in operating expenses over the next 12 months by reducing headcount in certain R&D and manufacturing units. The author notes that the CFO’s forecast indicates a return to operating margin above 20 % by Q4 2026.
Moreover, the article highlights a new “Intel Growth Fund” launched in Q3 2025. The fund is aimed at investing $500 million in high‑growth startups that align with Intel’s AI and edge computing strategy. The author suggests that this initiative could attract venture capital and improve Intel’s market perception as an innovator.
7. Potential Risks
While the article is optimistic, it also outlines risks. Supply chain disruptions remain a threat, particularly if geopolitical tensions affect access to advanced fabrication equipment. Intel’s reliance on third‑party foundries also introduces execution risk. Additionally, the company faces fierce price competition from AMD’s EPYC CPUs and Nvidia’s Grace GPUs, which could erode Intel’s margin if it cannot keep pace.
Bottom Line
Intel’s stock could see a significant move if it manages to accelerate its transition to advanced process nodes, capitalizes on AI and autonomous driving opportunities, strengthens its data‑center leadership, and tightens its cost structure. The Forbes article presents a compelling case that the next catalyst could be a combination of strategic partnerships, breakthrough chip technologies, and a renewed focus on high‑margin markets. Investors who weigh these factors may find Intel’s valuation becoming more attractive as the company positions itself to compete more effectively in the rapidly evolving semiconductor landscape.
Read the Full Forbes Article at:
[ https://www.forbes.com/sites/greatspeculations/2025/11/06/what-could-spark-intel-stocks-next-big-move/ ]
