Intel is one of the notable chip stocks that have not fully captured investor interest amidst the AI revolution. Over recent years, the technology sector has seen unprecedented growth, largely driven by artificial intelligence advancements. Semiconductor stocks, in particular, have benefited significantly due to their crucial role in generative AI development.
Since the commercial launch of ChatGPT on November 30, 2022, shares of Nvidia, Broadcom, and Taiwan Semiconductor Manufacturing have surged by 592%, 272%, and 110%, respectively. The VanEck Semiconductor ETF has seen a 93% total return during this period.
Despite the overall growth in the semiconductor industry, some stocks have lagged. Intel’s investors are familiar with this trend, as the company has experienced a 32% decline since the AI boom sparked by ChatGPT.
Intel’s stock is currently trading near its lowest level in the past 15 years, raising questions about whether it presents a “buy-the-dip” opportunity.
Understanding the disparity in semiconductor stock performance is important. Nvidia is prominent for designing GPUs, essential for training AI models, thereby playing a crucial role in AI application development. Broadcom’s expertise lies in equipping data centers with vital network equipment and assisting companies in designing custom chipsets. Taiwan Semiconductor Manufacturing brings these designs to life through its leading foundry services.
Intel, while diversified, has faced challenges in its foundry business. This segment generated $17.5 billion in revenue in 2024, down 7% from the previous year, and reported an operating loss exceeding $13.4 billion, nearly double the prior year’s losses. In the first quarter of 2025, Intel’s foundry segment reported $4.7 billion in revenue, marking a 7% year-over-year increase. However, this growth was partly due to revenue adjustments, with expectations of a slowdown in the coming months.
Despite Intel’s involvement in chip development, the company continues to lose market share to Taiwan Semiconductor Manufacturing and struggles to operate its foundry segment profitably. The growth trends in this area remain unpredictable.
The declining stock price might attract some investors, yet Intel’s current struggles justify the sell-off. The company is in a turnaround phase, and it remains uncertain if the new leadership will steer it back on track. Wall Street forecasts suggest minimal revenue or earnings growth over the next few years. Given the instability of Intel’s foundry business amid rising competition, especially from Taiwan Semiconductor Manufacturing, Intel is viewed as a speculative investment, leading some to hold off on purchasing the stock.
