Intel Stock Forecast This Week: Intel Corp. (NASDAQ: INTC) is again in the news this week with a healthy 7.05% pop, taking the share price to around $20.89 to $20.96 on April 23, 2025. After months of lackluster performance and skepticism from investors, this dramatic jump is creating a new buzz. But is this the beginning of a comeback, or merely a bear bounce leading up to earnings?
Intel Stock Performance: A Sharp Rise with Heavy Volume
INTC opened at $20.72 and traded between $20.31 and $21.03 during the session. Volume shot up to 35 million, though still short of its 65-day average of 111.62 million. Relative to recent losses, this pop has renewed some hope. For the past five days, the stock is higher by 8.61%, however, the larger trend reveals a different picture. It is lowered by 10.82% for the last month and almost 40% for the last twelve months.
Market Cap and Valuation Issues
Intel market cap is currently at $85.08 billion, which is much less than its key chip-producing competitors. Interestingly, the price-to-earnings ratio for the company is not present since earnings per share (EPS) are still negative at -$4.37. This poor earnings context casts doubts over long-term value. The lack of a yield and a fairly small dividend of $0.13 (last ex-dividend date August 7, 2024) also lowers the attractiveness for income-oriented investors.
Also read: Why Tesla Stock Is Up After Hours Despite Earnings Miss – Elon Musk’s DOGE Move Explained
What Triggered the Rally? Massive Job Cuts and Restructuring
Reports indicate that Intel is going to cut its global workforce by over 20%. The restructuring is geared towards reducing operational expenses while the company repositions in the face of stiff competition and declining PC demand. Investors are welcoming the move with open arms, perceiving the layoffs as the right step to enhance margins.
While layoffs always stink, Wall Street generally views them as a sign that a company’s serious about being lean and mean. That sure seems to be the case in this instance, with the stock rebounding pre-company Q1 earnings.
Q1 Earnings in Focus
The street is currently closely observing Intel’s next Q1 earnings release. Sentiment among analysts is divided, with 43 analysts following the stock and tending toward a “Hold” rating overall. Some have lowered price targets, citing softer demand across several segments. Others think the layoffs might put the company on a more sustainable path for the second half of the year.
Core Business Segments: Broad but Pressured
Intel has a broad portfolio of tech segments: Client Computing (CCG), Data Center & AI (DCAI), Network & Edge (NEX), Mobileye, Accelerated Computing (AXG), and Intel Foundry Services (IFS). Diversification is typically a good thing, but at the expense of complexity, Intel’s breadth carries it into everything from simple CPUs to performance GPUs and AI processors.
Even with its penetration, Intel is falling behind the competition in terms of scale and innovation. For instance, Taiwan Semiconductor, Nvidia, and AMD are still reporting better growth figures and having much bigger market caps. Intel’s AI and graphics divisions, particularly, are failing to make significant gains.
Competition Remains Fierce
Intel’s rivals are not holding back. Nvidia, with a market capitalization of more than $2.4 trillion, keeps leading the pack in AI chips. AMD and Broadcom are expanding aggressively as well. Intel’s beta of 1.32 indicates the stock is more volatile than the market average which is excellent during a bull trend, but dangerous during volatile periods such as these.
Short Interest and Investor Sentiment
Short interest is 113.62 million shares, roughly 2.61% of the public float. That’s not unusually high, but it does indicate that some traders are still shorting the stock. Any unexpected news positive or negative could trigger sudden moves in either direction.
Outlook: Volatility Ahead of Results
Looking forward, the week ahead will be pivotal. The stock will hold at or above $20 if investor sentiment is positive leading into earnings. But if the company stumbles on revenue, guidance, or cost-cutting effects, the stock can quickly drop back down below $19.51, its last close.
Investors need to prepare for volatility. Intel’s turnaround will require more than staff cuts. It will require clean wins in AI, server chips, and foundry services.
Final Thoughts
Intel stock increase this week provides a glimmer of hope, but caution is in order. The restructuring action could benefit margins, but it does not address Intel’s fundamental issues. The earnings report next week will be critical. Long-term investors may wish to wait for greater clarity, while short-term traders may find opportunity in the volatility.
Be on notice — this week may be a turning point for INTC.
