Is INTC a good stock to buy? We came across a bullish thesis on Intel Corporation on Nikhs’s Substack. In this article, we will summarize the bulls’ thesis on INTC. Intel Corporation’s share was trading at $99.17 as of June 5th. INTC’s trailing and forward P/E were 904.17 and 123.46 respectively according to Yahoo Finance.
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Intel Corporation designs, develops, manufactures, markets, sells, and services computing and related end products and services in the United States and internationally. INTC is positioned as a deeply undervalued semiconductor company where the market is still pricing in structural skepticism despite improving operational signals across manufacturing, foundry, and advanced packaging.
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The thesis centers on valuation dislocation versus peers, with Intel trading at 3.6x price-to-book compared to Taiwan Semiconductor Manufacturing Company at 10.6x, Tower Semiconductor at 7.8x, and GlobalFoundries at 2.9x, even though Intel remains the only integrated leading-edge competitor with scalable capacity and full-stack CPU and foundry exposure.
On a relative basis, Intel is argued to deserve at least a 5.8x price-to-book multiple, implying a minimum upside valuation of approximately $133 per share based on a 22.9 book value per share versus a current price near $81. The bullish case is reinforced by early improvements in 18A execution, gross margins exceeding 40 percent, and increasing external foundry engagement that, while still small, signals meaningful optionality.
Demand from AI and agentic workloads structurally increases the importance of high-performance CPUs, where Intel competes directly with AMD, Apple, and ARM-based architectures, while capacity constraints at TSMC further strengthen Intel’s role as a flexible supply alternative. Advanced packaging capacity, cleanroom availability, and emerging external demand from customers unable to secure CoWoS allocation add additional upside to utilization and pricing power.
Even under conservative assumptions, Intel’s manufacturing progress, pricing leverage potential, and strategic positioning in AI compute supply chains support a rerating toward higher valuation multiples and a significant revaluation toward the stated upside target as execution continues to improve across cycles over time horizon.
Previously, we covered a bullish thesis on Intel Corporation (INTC) by Jellym9s on Wallstreetbets in December 2024, which highlighted Intel’s foundry ambitions and geopolitical tailwinds. Intel Corporation’s stock price has appreciated by approximately 374.04% since our coverage. Nikhs’s Substack shares a similar view but emphasizes valuation rerating versus peers, 18A execution, and upside toward $133 per share.
Intel Corporation is on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 112 hedge fund portfolios held INTC at the end of the first quarter which was 96 in the previous quarter. While we acknowledge the risk and potential of INTC as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than INTC and that has 10,000% upside potential, check out our report about this cheapest AI stock.
Disclosure: None.
