IntelNASDAQ: INTC

Intel stock's improved outlook has mitigated recent selling intensity, helping INTC bolster its bottom above the $20 level. Management's restructuring and cost-cutting efforts have bolstered market confidence. However, are they enough for a long-term turnaround? Intel's external foundry business and AI chip efforts lag behind those of its key rivals.

Companies can frequently increase their stock prices by separating different parts of their business. This usually involves getting rid of a non-essential division or even a division that is losing money and turning it into a separate company.

The well-established chip manufacturer is encountering yet another difficulty.

Intel's plan to achieve "5 nodes in 4 years" and its restructuring efforts are focused on increasing profits, but significant revenue growth doesn't seem probable in the short to medium term. In the third quarter, the company reported a 6% year-over-year drop in revenue and a non-GAAP earnings per share of -$0.46, showing that there has been no recovery since the revenue decline in mid-2022. However, its Foundry, Mobileye, and AI sectors may provide some revenue growth in the future.

The Q3 earnings report is satisfactory, but investors should think about the long term since Intel's foundry has a long lead time that is impacting its overall profit margins. Intel's strong position in the enterprise sector will help as it develops its AI strategy for this area. Using retrieval-augmented generation and small language models could be the key for the company to succeed in the growing AI market.

Intel's strong performance this quarter and its positive outlook provide optimism for a significant 2025.

AMSTERDAM--(BUSINESS WIRE)--Intel 471 has published a report to assist important organizations in Europe with understanding NIS2.

Intel's financial situation remains very poor. Although the company needs to invest a lot of money, it may take several years before this spending leads to financial improvements. However, the high trading volume indicates that some investors are buying shares, hoping for better news from Intel in the future.

Investors have been hesitant to buy Intel stock due to its weak performance in the past few years.