Intel Corporation (INTC): A Bull Case Theory

Core Thesis - Intel Corporation (INTC) is experiencing a significant turnaround with strategic investments and government support, positioning itself as a key player in the semiconductor industry, particularly in AI-related technologies [4][5][7] Financial Performance - As of September 24th, Intel's share price was $31.22, with trailing and forward P/E ratios of 88.08 and 47.39 respectively [1] - Year-to-date gains for INTC shares exceeded 36% leading up to the Nvidia investment [5] - Since April 2025, the stock price has appreciated approximately 59% due to positive developments in the company's strategy [6] Strategic Developments - Intel is focusing on advanced chip manufacturing, having returned to leading-edge production through substantial investments and a dual strategy of outsourcing and enhancing Intel Foundry Services (IFS) [2] - The appointment of Lip-Bu Tan as CEO and the U.S. government's acquisition of a 10% equity stake in Intel through CHIPS Act grants have been pivotal [4] - Major investments from SoftBank and Nvidia, including a $5 billion stake from Nvidia, are aimed at collaboration on AI-focused chips [4] Competitive Landscape - Intel faces challenges in its competitive position against dominant players like TSMC and Samsung in the 3nm–5nm semiconductor manufacturing space [3] - The market initially reacted skeptically to Intel's performance, particularly after disappointing Q2 results in August 2024 [3] Future Outlook - The future performance of Intel will be influenced by government involvement in strategic decision-making and the company's ability to execute collaborations with partners like Nvidia and SoftBank [5] - The investment case for Intel balances potential upside from increased AI-related orders against the complexities of government influence [5]