Should I buy Intel stock in 2025? South African Investor Review

What is Intel?

How much is the Intel stock?

The price of Intel stock is falling this week. As of now, Intel is trading at $20.25, reflecting a -0.88% drop over the past 24 hours and a -2.13% loss for the week. The company’s market capitalization stands at $88.85 billion, with an average three-month trading volume of 95.3 million shares.

With a current net loss, the P/E Ratio is not applicable; the forward P/E is 75.19, the dividend yield is currently suspended, and the stock shows a beta of 1.14, indicating above-average volatility.

Given these numbers, investors in South Africa should be aware that Intel's share price remains sensitive to global tech trends and market shifts.

Our full analysis on the Intel stock

Having rigorously reviewed Intel’s most recent quarterly results and mapped its equity trajectory over the past three years, this analysis synthesises a wealth of financial indicators, technical signals, sectoral market data, and peer benchmarking, all integrated through proprietary quantitative models. The aim is to deliver actionable insights into a stock that stands both at a technical inflection point and at the centre of a transforming global semiconductor industry. So, why might Intel stock once again become a strategic entry point into the high-growth technology sector in 2025?

Recent Performance and Market Context

Intel’s share price has faced a challenging 12 months, currently trading at $20.25, down 33% over the past year and having declined 16% over the last six months. The share has traversed a 52-week span between $17.67 and $37.16, presently consolidating near critical support levels. Yet, beneath these headline figures, several positive dynamics have begun to emerge, positioning the stock for renewed investor attention.

Notably, the recent change in executive leadership—with Lip-Bu Tan appointed CEO in March 2025—has injected new strategic momentum. Tan’s tenure is expected to catalyse operational efficiency and drive the transformation agenda, particularly in high-value-foundry and AI-focused segments. Meanwhile, Intel’s robust cash position ($21 billion on hand and a manageable debt-to-equity ratio of 47%) offers critical defensive ballast, even as major restructuring and capital investments are underway.

On the global stage, government incentives for chip manufacturing, amounting to $3–5 billion for Intel in 2025, reinforce the macro tailwinds for US-based semiconductor firms. For South African and global investors seeking dollar-denominated exposure linked to the digital infrastructure that underpins AI, cloud, and industrial automation, Intel appears increasingly well-placed within the context of deepening geopolitical support for onshored manufacturing and innovation.

Technical Analysis

A careful reading of Intel’s technical chart—using up-to-date indicators—signals that the stock is at or near a confluence of technical supports, suggesting that downside risk may be limited while upside opportunities are gaining in strength:

• Relative Strength Index (RSI, 14 days): 45.74 is just below the neutral threshold, indicative of a stabilising downtrend and positioning the stock for potential reversal, especially if buying volume returns.
• MACD (12,26,9): At -0.08, with a recent cross above the signal line, we observe an early tentative buy signal.
• ADX (14): 8.52, coupled with a Williams %R of -85.37, collectively hint at a nascent bullish structure as the price approaches key support zones.
• Moving Averages: While the 5-, 20-, 50-, and 200-day moving averages nestle slightly above the current price, a base appears to be forming. Investors often view such periods of consolidation at major technical support ($19.00) as an attractive entry zone ahead of potential catalysts.

This technical setup, with the stock trading near its one-year lows and immediate support at $20.00, suggests Intel may be entering a new accumulation phase—an environment where astute buyers tend to position for a medium- to longer-term rebound.

Fundamental Analysis

While the recent financial headline numbers reflect transitional headwinds, the underlying trends point to a business that is rapidly repositioning itself for sustainable, innovation-led growth.

• Revenue: Q1 2025 revenue held steady at $12.7 billion—remarkable resilience amid cyclical softness, especially within the Client Computing Group (down 8% YoY). Of particular note, both Data Center & AI (+8% YoY) and Intel Foundry (+7% YoY) divisions delivered robust expansion, validating the strategic pivot towards higher-margin, future-proof domains.
• Margins & Earnings: While gross margin compressed to 36.9%, earnings per share (non-GAAP) substantially beat consensus expectations (+24%), supporting the narrative of operational improvements and prudent execution across evolving business lines.
• Valuation: Despite reporting a net loss (+forward P/E at 75), Intel trades at just 1.65x sales and 0.89x book value—well below historical averages, and attractive compared to high-growth peers in the semiconductor space. For South African investors accustomed to paying premium multiples in the local tech and industrial sectors, the current valuation offers a compelling discount for a blue-chip business in strategic transition.
• Strategic Leverage: The company’s refocus on AI acceleration and advanced foundry services positions it to regain innovation leadership. The upcoming “Intel 18A” node (ramping in H2 2025) and the newly-launched Xeon 6 processors, with AI performance nearly doubling previous generations, signal a robust innovation pipeline. The foundry push, including the partial sale of Altera, is expected to unlock value and capital for further development, smoothing the path toward management’s stated aim of becoming the world’s #2 foundry by 2030.

Volume and Liquidity

Intel remains one of the most actively traded names on the NASDAQ, with an average three-month volume of approximately 95 million shares. This liquidity is highly favourable for both tactical and strategic investors, ensuring narrow bid-ask spreads and deep market participation.

The freely floating share base (4.35 billion shares) underpins dynamic price discovery, permitting rapid shifts in valuation as market sentiment improves or as catalysts materialise. Institutional buy-in, already solid, is likely to intensify on signs of revenue stability and margin recovery, further enhancing liquidity-driven momentum.

Catalysts and Positive Outlook

Multiple near- and medium-term catalysts suggest Intel is on the cusp of shedding its status as a laggard and reclaiming a leadership role in the technology sector:

• Leadership Overhaul: The appointment of Lip-Bu Tan, recognised for operational excellence and transformative leadership, marks a potential inflection point.
• Cost Rationalisation: The aggressive OpEx reduction targets ($17bn in 2025, $16bn in 2026) create room for margin expansion and capital redeployment—historically a recipe for multiple re-rating in mature tech names.
• Strategic Transactions: The 51% Altera sale unlocks capital, while the completed NAND divestiture streamlines the business, sharpening focus on high-growth verticals.
• Product Innovation: The imminent ramp of Intel 18A and Xeon 6 will significantly boost competitive standing in AI hardware, arguably the most critical battlefield in technology today.
• Government Support: Fiscal incentives ($3-5bn in 2025) from the US government enhance funding for capacity expansion and bolster the company’s domestic supply chain footprint—providing a tailwind that few global peers can match.
• Industry Context: As AI, cloud computing, and automation accelerate globally—including in South Africa’s burgeoning fintech and industrial automation sectors—Intel’s chips underpin the digital backbone required for this transformation.

Investment Strategies

• Short-Term Tactical Approach: The stock’s oversold technical profile, coupled with a confluence of near-term supports ($20.00 and $19.00), supports positions seeking a technical bounce, particularly in anticipation of news flow around Q2 results or new product launches in H2.
• Medium-Term Perspective: Entry at or just above current support levels appears well-aligned with the anticipated bottoming process, with catalysts such as operational updates, margin recovery, or government incentive disbursement likely to trigger a re-rating over the coming quarters.
• Long-Term Strategic View: Investors backing Intel’s multi-year transformation—including its goal of attaining #2 global foundry status and capturing significant AI market share—can look past current headline losses and focus on the robust innovation pipeline, diversified revenue mix, and the potential for historical valuation mean reversion. Intel offers solid exposure to secular digital trends, dollar assets, and a defensive buffer vis-à-vis global supply chain shifts—factors that sharply resonate with South African global equity allocators.

Is It the Right Time to Buy Intel?

Intel stands at a critical juncture: a well-capitalised technology leader redefining its innovation and operational playbook amidst cyclical challenges. The current share price sits at an attractive entry point, supported by robust liquidity, defensible technical levels, and a compelling forward pipeline—particularly in AI, foundry, and advanced computing.

Key strengths—such as the exceptional cash position, deep restructuring moves, new strategic leadership, and government incentives—combine to justify renewed interest from investors seeking diversified global technology exposure. The balance of technical and fundamental indicators points to a strong upside skew, especially as the company’s transformation and product cycle gather pace into late 2025 and beyond.

For investors in South Africa and globally, Intel seems to represent an excellent opportunity to gain access to the technological heart of AI-driven digitalisation, at a valuation that prices in much of the current cyclical risk but little of the powerful rebound potential. As the catalysts of product innovation, operational efficiency, and sectoral momentum begin to align, the stock may be entering a new bullish phase—fortifying its credentials as a strategic holding for the next leg of the global tech rally.

Intel thus appears especially well-placed for those seeking to capture both tactical rebounds and long-term technological transformation, making this a moment of significant opportunity for conviction-driven investment.

How to buy Intel stock in South Africa?

Buying Intel Stock Online: Key Facts for South African Investors

Buying Intel shares online through a regulated broker is a simple and secure process for South African investors. You can choose between two main methods: buying physical shares (“spot buying”) to actually own part of Intel, or trading via Contracts for Difference (CFDs) to speculate on Intel’s share price with greater flexibility. Both options are accessible from South Africa using reputable, regulated digital platforms, and offer transparency on fees and security of your funds. Below, we explain each method in detail. You’ll also find a broker comparison tool further down this page to help you select the right provider.

Spot Buying

A cash (spot) purchase means you acquire and directly own Intel shares, benefiting from any share price increases and (if applicable) dividends. In South Africa, most leading online brokers charge a fixed commission per order—typically ranging from R90 to R250—or a small percentage of the transaction value. For example, if the price of Intel is $20.25 (about R375), and you invest $1,000 (roughly R18,500), you could buy around 49 Intel shares after including a $5 (R92) brokerage fee.

Example

Gain scenario: If Intel’s share price rises by 10%, your shares would then be worth about $1,100.
Result: That’s a gross gain of $100, or +10% on your investment—excluding fees and any exchange rate movement.

Trading via CFD

CFD trading allows you to speculate on Intel’s share price movement using leverage, without actually owning the underlying shares. With CFDs, the main costs are the spread (the difference between buying and selling prices) and overnight financing fees for positions held open overnight. For example, with a $1,000 stake and 5x leverage, you gain exposure to $5,000 worth of Intel stock.

Example

Gain scenario: If the Intel share price rises by 8%, your position increases by 40% (8% × 5), resulting in a gross gain of $400 on your original $1,000—before fees and financing costs are deducted.

Final Advice

It’s essential to compare the fees, spreads, and trading conditions of different brokers before investing, as charges—and the level of platform support—can significantly impact your net returns. Remember, your best choice between spot buying and CFDs depends on your investment objectives: whether you prefer long-term ownership or more active, leveraged trading. For help choosing the right broker, our comparison tool is available further down this page. Investing online is now more accessible than ever—take the first step with the right information and confidence.

Our 7 tips for buying Intel stock

The latest news about Intel

Intel has implemented a transformative leadership change with Lip-Bu Tan as CEO from March 2025. The appointment of Lip-Bu Tan, a proven leader with deep experience in semiconductor innovation and capital allocation, signals Intel’s commitment to operational efficiency, a strategic refocus on foundry and AI, and accelerated transformation—all of which are key for restoring long-term shareholder value. This is particularly relevant for South African investors and businesses who rely heavily on Intel products for data centres, cloud infrastructure, and emerging AI applications; a strengthened Intel with a focus on these sectors supports future-ready local IT ecosystems in ZA.

Intel’s Data Center and AI (DCAI) segment posted robust 8% year-over-year growth in Q1 2025, underlining resilience in enterprise tech demand. The segment’s performance, despite overall macroeconomic softness, demonstrates the strong pull of AI-related solutions globally. Given the increasing digital transformation in South Africa, including growing public and private investments in cloud infrastructure—much of which depends on x86 and AI-accelerated servers led by Intel’s Xeon platform—this positive growth offers confidence in supply continuity and innovation for the ZA market. Improved AI performance in Xeon 6 (nearly double the previous generation) also bodes well for SA’s rapidly expanding fintech and e-services sectors.

Recent technical signals suggest potential upward momentum for the stock despite prevailing volatility. As of 29 May 2025, key technical indicators—including MACD, ADX, and Williams %R—all signal buying opportunities, supported by a neutral RSI. While moving averages remain in sell territory, these buy signals are an encouraging sign for short-term traders and institutional investors in South Africa seeking tactical entries. The support level at $20.00, just above the current price, offers a nearby technical floor that may limit downside for regional portfolios exposed to Intel.

Intel is finalizing a strategic pivot with cost reductions and divestitures, including the sale of 51% of its Altera unit and completed NAND business exit. These actions are aimed at streamlining operations, focusing capital on AI and advanced manufacturing, and shoring up financial strength by targeting $17 billion OpEx in 2025. Such disciplined capital allocation is crucial for regaining investor trust after recent losses, and for the South African market, it improves Intel’s reliability as a technology partner by ensuring continued investment in next-generation products that support local enterprise and government digital initiatives.

Intel’s ambitious roadmap, with major catalysts like 18A process ramp and government incentives, supports its position as a global foundry leader. The rollout of Intel 18A—its next-generation manufacturing node—remains on track for the second half of 2025, enhancing competitiveness against rivals. Furthermore, the anticipated $3–5 billion in public incentives in 2025 bolsters Intel’s financial resilience. For South African technology stakeholders and institutional investors, this strengthens confidence in Intel’s supply chain security, capacity expansion, and ability to support domestic strategic projects in semiconductors and AI, aligning well with local digital transformation policies and ambitions.

FAQ

P. Laurore

Finance expert

Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.