Intel gets rid of her car business. How should you play intc here?

Intel Corp_ Santa Clara Campus -By IT via Shutterstock

Over the past few years, INTEL (INTC) has moved to the important opposite winds, starting with the executive rotation rates and the delays that cause invested pressure, while their competitors such as Advanced Micro Devices (AMD) and NVIDIA (NVDA) have gained gains in the market. However, the vast INTEL manufacturing and the deep search and development engine continues to consolidate solid computers and demand at the data level.

Now, Intel ends the car unit at home and most of its employees are demobilized, although they will honor the current contracts. This unit, which was once expected to design vision processing chips and advanced drivers assisting systems (ADAS), is struggling against the most specialized and more specialized competitors. To move forward, INTEL plans to rely on the stock site in Mobileye (MBLE) to exposure to self -government leadership instead of financing the intense automatic lick line.

Investors should note that exit from the automatic fall market liberates Intel to focus on higher signs and growing tablet services. This strategic axis can push the reuoring intc shares.

Its headquarters in California, Intel is a global technical company that designs and manufactures semiconductor. It focuses on client computing, data center, AI and Foundry services. It also invests in self -driving software and technology through its share in Mobileye. The company serves customers all over the world with its chips and innovative solutions and has a maximum market for about $ 99 billion.

Intel shares decreased by 28 % during the past year as the delay in manufacturing, fierce competition, and computers sales decreased. However, in 2025, the arrow recovered and about 12 % rose on cost discounts, AI momentum, and improving the demand for the data center, among other things.

Even after the gathering, Intel is still trading with attractive 1.85X sales forward, by deducting approximately 40 % on the average of 3X sector, which implicitly means great potential in the upward trend if the marginal recovery that is moved by artificial intelligence and the growth of sake.

Intel has recently accelerated Push Ai by collaborating with OEMS like HP to deliver upcoming AI computers, including Elitebook X, Elitebook Ultra and EliteBook 8, supported by Intel Core Ultra processors. These chips enhance real world applications like Power BI and Tableau by up to 48 % against previous systems. Intel aims to charge more than 100 million processors of artificial intelligence, depending on the end of the year.

Intel started in the second quarter of 2025 with fixed revenues of $ 12.67 billion, with unanimity estimates of $ 12.26 billion. The Museka sector recorded $ 4.7 billion in sales, an increase of 7 % and overcomes expectations, while Intel products revenues amounted to $ 11.8 billion, a decrease of 3 % on an annual basis. The total margin has been contracted by 36.9 %, a decrease of 4.1 percentage points, reflecting the product mixing and cost pressure attacks.

On the profitable front, the average net income reached $ 580 million, a decrease of 23.6 % on an annual basis, a quarter of a modified stock at $ 0.13, a decrease from $ 0.18 in the second quarter of 2024.

Intel produced a little more than $ 800 million in operating cash flow, but it recorded a free cash flow of about $ 3.68 billion. At the end of the quarter, cash and rewards amounted to $ 8.95 billion, an increase of 6.92 billion dollars in the previous year.

Looking at the future, Intel directed the revenue of Q2 2025, which amounted to $ 11.2 billion to $ 12.4 billion with EPS tie, below the hopes of Wall Street. Although the company has not issued full revenue goals for a year, analysts’ sales are 2025 at a value of $ 50.4 billion and EPS at $ 0.30. Outlook Q2 confirm caution from Intel on the continuous opposite winds on the market, but disciplined spending and artificial intelligence concentration may push additional margin improvements soon.

The Wall Street analysts took a cautious position on Intel’s shares, as they set the “Hold” consensus classification. Of the 38 analysts, one of them evaluates a “strong purchase”, 23 says “Hold”, and five recommends “a strong sale.” The stocks are trading near the average target price of $ 22.42. However, its high goal in the street of $ 62 involves more than 180 % of the upscale capabilities.

Since INTEL gets rid of the car unit in losing and re -focusing on artificial intelligence databases, personal computer slices, and Foundry services, they put themselves in higher margins. Implementation will be determined on new products, disciplined spending and independent bullish mobileye whether INTC can close the evaluation deduction and provide sustainable shareholders ’revenues.

On the date of publication, Nauman Khan did not have positions (either directly or indirectly) in any of the securities mentioned in this article. All information and data in this article are only for media purposes. This article was originally published on Barchart.com

https://media.zenfs.com/en/barchart_com_477/4bc6cedfb85e4ad436b4816e4ecab9b9

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