Intel Corporation (INTC): A Bull Case Theory

We came across a bullish thesis on Intel Corporation on Long-term Investing’s Substack by Sanjiv. In this article, we will summarize the bulls’ thesis on INTC. Intel Corporation's share was trading at $31.22 as of September 24th. INTC’s trailing and forward P/E were 88.08 and 47.39 respectively according to Yahoo Finance.

Intel Corporation (INTC) has been navigating a turbulent period following setbacks in 2020, with the company working to regain its footing in advanced chip manufacturing. As of mid-2024, Intel had returned to leading-edge production through substantial investments, under a dual strategy of partially outsourcing manufacturing while trying to make Intel Foundry Services (IFS) profitable—a goal management does not expect to achieve until 2030.

Despite these efforts, the company’s competitive position remains challenging, particularly versus TSMC and Samsung, the dominant players in 3nm–5nm semiconductor manufacturing, and the market initially remained skeptical, with INTC shares declining sharply after disappointing Q2 results in August 2024.

Momentum shifted dramatically in 2025 following a series of strategic developments. Pat Gelsinger’s departure as CEO in March and the appointment of Lip-Bu Tan coincided with the U.S. government acquiring a 10% equity stake in Intel through undisbursed CHIPS Act grants and the Secured Enclave program, effectively designating Intel as a national champion for domestic chip production. This move was followed by major strategic investments from SoftBank and Nvidia, with Nvidia taking a $5 billion stake at $23.26 per share, signaling collaboration on AI-focused chips integrating Intel CPUs with Nvidia GPUs and expanding AI computing infrastructure.

These developments have propelled INTC shares sharply higher, with year-to-date gains of over 36% leading up to the Nvidia investment. While the market momentum is undeniable, Intel’s future performance will be influenced by government involvement in strategic decision-making and its ability to execute on these collaborations. The investment case now balances the potential upside from increased AI-related orders and strategic positioning against the complexity and uncertainty of government influence, making valuation challenging but the stock an intriguing prospect for investors watching U.S.-based semiconductor growth.

Previously we covered a bullish thesis on Intel Corporation (INTC) by DeepValue Capital in April 2025, which highlighted AI inference, domestic chip manufacturing, leadership under Lip-Bu Tan, and cost-cutting initiatives. The company's stock price has appreciated approximately by 59% since our coverage. This is because the thesis played out amid renewed investor confidence. Sanjiv shares a similar perspective but emphasizes government stakes and strategic partnerships with Nvidia and SoftBank as key catalysts.

Intel Corporation is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 82 hedge fund portfolios held INTC at the end of the second quarter which was 91 in the previous quarter. While we acknowledge the 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 HGTY and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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Disclosure: None.