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Intel: No Resolution To Foundry And AI Problems

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Update - Oct. 23, 2025

Intel beats weak guidance and hardly grows during an AI chip boom, market cheers anyway with weak guidance for Q4. The market just seems to get dumber and dumber.

-Q3 Non-GAAP EPS of $0.23 beats by $0.22.
-Revenue of $13.7B (+3.2% Y/Y) beats by $560M.

Q4 Guidance 
Revenue guidance of $13.4B vs. consensus of $13.37B
EPS guidance of $0.08 consensus of $0.08


Original article posted on Oct. 7

  • Intel has surged despite no fundamental improvements in its foundry business or AI capabilities, making the rally appear irrational.
  • The chip company has signed deals with Nvidia and the U.S. government for cash infusions provides liquidity but do not solve the lack of HPC foundry customers or AI solutions.
  • IFS continues to report massive losses, and competitors like AMD and TSMC show no signs of meaningful collaboration with INTC on premium chips.
  • The stock is extremely expensive at over 30x '27 EPS targets, investors are advised to use the rally to exit positions as prospects remain bleak and dilution has increased.
Intel (NASDAQ:INTC) continues to surge while the financial prospects of the business haven’t improved. The US government and Nvidia (NVDA) deals provide Intel with necessary cash, but the chip giant is nowhere closer to a foundry business making high-performance chips. My investment thesis is ultra Bearish on the stock, especially after this big rally and no turnaround in the business.

Read the full article on Seeking Alpha. 

Disclosure: No position mentioned. Please review the disclaimer page for more details. 

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