Intel (INTC) Is 'Dead Money'--Layoffs, Slow Growth Raise Red Flags

In April 2025, Intel INTC said it intends to slash over 20% of its global workforce under new CEO Lip-Bu Tan after posting quarterly results that beat Street estimates, though its shares remain pressured. That momentum, however, hasn't translated into investor confidence, raising questions about Intel's long-term strategy.

Susquehanna analyst Christopher Rolland labels Intel dead money in its present form and suggests a split between its manufacturing arm and production divisions could unlock shareholder value. The Trump administration's focus on onshoring semiconductor production adds urgency to that strategy.

Intel's 18A process node is gaining traction despite early hurdles. Rumors swirl of potential foundry agreements with Microsoft MSFT, and talks with Google GOOGL are reportedly underway. High-volume production is targeted for the second half of 2025, which could attract hyperscale customers and ease concerns over the lack of a major client.

Shares of Intel have slid roughly 30% from their year-to-date high, though the stock pays a 2.57% dividend yield. Rolland maintains a neutral rating, noting rivals like AMD AMD continue to chip away at Intel's market share and questioning whether a pickup in PC demand is sustainable. The mean price target of about $24 implies more than 20% upside if these initiatives gain momentum.

Is Intel Stock Still a Buy?