Intel Corporation (INTC): A Bull Case Theory

We came across a bullish thesis on Intel Corporation on Rittik’s Substack by Anand Capital. In this article, we will summarize the bulls’ thesis on INTC. Intel Corporation's share was trading at $24.55 as of August 25^th. INTC’s trailing and forward P/E were 88.08 and 222.22 respectively according to Yahoo Finance.

Intel Corporation is at a critical inflection point, representing both one of the most ambitious turnarounds in the semiconductor industry and one of the riskiest. Once the world’s largest chipmaker by revenue, Intel has seen its market position eroded by execution missteps, technological delays, and intense competition from TSMC, NVIDIA, and AMD. Yet, the company now has unprecedented backing to reverse its decline.

SoftBank’s $2 billion investment at $23 per share, alongside $7.86 billion in direct U.S. CHIPS Act funding and a 10% stake taken by the Trump administration, provides Intel with financial and strategic resources few peers can match. Under new CEO Michelle Tan, Intel is restructuring its business around manufacturing leadership recovery, AI penetration, foundry services, and geographic diversification.

The foundry strategy, positioned as a U.S. and European alternative to TSMC, is central to the turnaround. If successful, it could establish Intel as a geopolitical linchpin in global semiconductor supply chains. Execution risks remain substantial, with revenue down 33% from its 2021 peak, margins under pressure, and heavy capital requirements. The company is also contending with political uncertainty, leadership scrutiny, and continued market share erosion.

Still, the upside is compelling: a base case of $28-32 per share in 12–18 months and $35+ if Intel regains process parity and wins major foundry customers. With $33 billion in liquidity, world-class assets, and government contracts in the pipeline, Intel offers asymmetric risk-reward. For investors with patience and risk tolerance, the company’s transformation provides an opportunity for significant upside if execution aligns with ambition.

Previously we covered a bullish thesis on Intel Corporation (INTC) by DeepValue Capital in April 2025, which highlighted Intel’s AI inference positioning, domestic manufacturing push, and cost optimization under Lip-Bu Tan. The company’s stock price has appreciated approximately 25% since our coverage. This is because government funding and partnerships improved sentiment. The thesis still stands. Anand Capital shares a similar view but emphasizes SoftBank’s investment and Michelle Tan’s leadership.

Intel Corporation is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 91 hedge fund portfolios held INTC at the end of the first quarter which was 83 in the previous quarter. While we acknowledge the potential of INTC as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.