Intel Shares Rise on Acquisition Rumours, but Headwinds Remain

Shares of Intel Corporation (NASDAQ: INTC) rallied +9.25% on Friday, January 17, closing at $21.49, as speculation of a potential acquisition by an undisclosed company buoyed investor sentiment. The uptick offered a boost for the troubled chipmaker, whose shares plunged nearly -55% in 2024, amid a backdrop of revenue declines and management changes.

Despite the market optimism, analysts remain cautious. Visible Alpha data shows no “buy” ratings for Intel, with most consensus views stuck at “hold.” The company reports Q4 2024 results on Thursday, January 30, 2025.

Intel’s struggles have been acute: following sharp contractions of -14% in 2023 and -20% in 2022, revenues are forecast to decline -2.9% year-over-year to $52.7 billion in 2024. However, its Data Center and AI division, buoyed by Xeon 6/Granite Rapids and Gaudi 3 products, is projected to post modest growth of +1%—its first expansion in two years. Meanwhile, Total Product revenues, which account for nearly 70% of Intel’s top line and include contributions from the Client Computing Group (CCG), Networking & Edge, and Data Center and AI segments, are forecast to decline by -4%. Foundry Services, making up approximately 25% of revenue, is expected to contract by -8%. The company’s Other segment—which encompasses Mobileye, Altera, and other businesses—is set to face the steepest decline, with revenues projected to plunge -31%.

Looking ahead, analysts anticipate a recovery in 2025. Growth is expected to be driven by Networking & Edge (+9% YoY), Data Center and AI (+6%), and Client Computing (+4%) sub-segments under Products. Meanwhile, the Other segment is expected to see a sharp rebound, with Altera revenue projected to climb +19% and Mobileye revenue forecast to surge +28%.