As Trump Talks Intel Stake Billionaires Cant Get Enough of.jpeg
In the late summer of 2025, Intel’s stock has long been launched in life with Washington’s political winds. President Trump, who once criticized Intel (INTC), suddenly indicated support. The United States has announced plans to convert the unused chips law into a share of about 10 % of the Intel shares.
At the same time, investors accumulated in INTC shares. Appaloosa Management by billionaire David Bold revealed a share of approximately $ 8 million in $ 179 million in the second quarter, and followed its last example: AQR Capital strengthened its detention by 210 %, Citadel added 6.25 million shares, and the Renaissance technologies bought 7.22 million shares from Intel. Even SoftBank (SFTBY) announced an investment of $ 2 billion with $ 23 per share in mid -August. Finally, it appears that the smartest Wall Street is treated with Intel as a potential return story, a giant of chips that have been suddenly lowerly seen as a transformation play. Can it be? Let’s discuss.
Its headquarters in California, Intel is a legal maker in a large -risk transformation center. Once dominant in computers and data centers, the company is now fighting to recover the lost land to AMD (AMD), NVIDIA (NVDA) and TSMC (TSM). Through new investments, government support, and the renewal of the investor’s interest, Intel defines itself as a recovery theater.
After a rugged start until 2025, Intel shares made a strong recovery, increasing by 20 % last month, up to 27 % profit. This gathering has been fed through reports of the potential government’s interest in taking a stake, which sparked renewed optimism about the transformation of the chips maker.
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In terms of evaluation, INTC is traded with very attractive complications. The ratio of the price to the book (P/B) is less than 1.04X than the average sector of 4.45X, which implicitly means that it is dense of its value. In addition, the percentage of its price (P/S) is 2.02X compared to 3.30x for the sector, indicating the cheapest price for revenue.
Moreover, Intel offers strong profits of about $ 0.28 per share per share, making it a competitor to investors in value and focused on profits.
Even before the official deal, big investors were behaving as if the Intel bottom had arrived. In Q2, Tepper’s Appaloosa has created a new site of 8 million shares in Intel. Other hedge boxes are stacked, as mentioned in the foreground. In the total, I think these moves indicate, as Surbhi Jain wrote to writing to Bazinga: “Some of the smartest Wall Street minds sees Intel as a big play.”
The purchase of smart money came alongside a sharp rise in Intel shares. Reports indicated that the shares jumped more than 20 % on government share news and SoftBank. A mixture of political support and the accumulation of hedge funds were cited as major drivers. For retail investors, the message appears clear: if the billionaire managers are betting heavily, then the long chips leader may finally manage this angle.
Despite political excitement, Intel Q2 profits showed that a company is still under reform. Revenue amounted to $ 12.86 billion in the second quarter of 2025, and is basis on an annual basis. The company was absent from profitability with a loss of $ 0.26, and lost $ 0.14.
Intel received heavy fees for one time, about $ 1.9 billion of restructuring costs and $ 800 million of asset deletions, which weighed on margins and led the loss. As a result, the modified operating profit remains negative, and the total margin has pressed. For example, in the Q2, the total margin was only 27-28 % compared to the middle of the thirties in the previous year, where the old factory equipment was retired.
Intel also burned money in a quarter, with a loss of $ 1.1 billion of a modified free cash flow (FCF), due to the continued investment and costs. However, the public budget still shows approximately $ 21 billion in cash and short -term investments at a quarter -end.
On the other hand, Intel trims expenses strongly. Lip-Bu Tan CEO has already reduced about 15 % of the basic workforce. The goal is to reduce the annual research and development spending in the field of research and development to 17 billion dollars in 2025, a decrease from more than 20 billion dollars, and obtaining capital expenses at $ 18 billion for this year. CFO David Zinsner emphasized that the liquefaction of non -basic assets and the reduction of operating costs is the key to “enhancing our public budget”.
Looking at the future, the administration expects Q3 2025 revenues ranging from approximately $ 12.6 to $ 13.6 billion and aims to profitize the stock about $ 0.24 for this period. This view assumes that the company’s plans to reduce costs are still continuing.
Most analysts’ companies remain cautious in the Intel government news. UBS Timothy Arcuri analyst reiterated a “neutral” position, noting that the EPS limited energy at the company level can approach the gains of approximately $ 20.
Among the 39 analysts followed by Barchart, the category of consensus stands in “Hold”, with one collapse “strong purchase”, 33 “Hold”, and five “strong sale”. Intel shares have already exceeded the average target price of $ 23, although the high expectations of the 62 -dollar street mean a significant increase of 148 % of the current levels.
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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
