Intel has teamed up with Japan’s AIST to build a cutting-edge quantum computer, aiming to leap from today’s 100-qubit systems to tens of thousands of qubits by the early 2030s. 

This partnership is a big deal because quantum computers can tackle problems far beyond what regular computers can handle, like breakthroughs in medicine, cryptography, and materials science. 

The timing is also interesting — Intel has been under pressure after losing its top spot in the semiconductor market. Intel is clearly looking for new ways to grow.  

Intel’s collaboration with AIST isn’t just about building a quantum computer —  it’s about staking a claim in what analysts predict could be a trillion-dollar industry by 2035. With this move, Intel is showing it’s ready to compete on new frontiers. 

But with so much competition and uncertainty, investors are left wondering: Is now the time to bet on Intel? Let’s dive deeper.

Intel’s Financial Health 

Intel (INTC) is a well-known name in the tech world, designing and manufacturing advanced microprocessors, chipsets, and other computing technologies. Its products power everything from data centers to personal computers and emerging technologies like AI. 

Now, with its ambitious quantum computing project alongside Japan’s National Institute of Advanced Industrial Science and Technology (AIST), Intel is looking to push the boundaries of innovation even further.

Over the past year, though, Intel’s stock has had a rough ride. It hit a high of $46.63 in March 2024 but tumbled to $18.51 by September — a drop of over 58%. So far in 2025, the stock has fallen another 4.8%. Short-term swings have been just as tough, with a one-month dip of 4.6% and a three-month loss of 27%.

Intel’s forward price-earnings ratio of nearly 40x is much higher than the industry average of 25x. 

Financially, Intel’s fourth-quarter 2024 revenue came in at $14.3 billion, down 7% year-over-year, contributing to an annual total of $53.1 billion — 2% lower than 2023. The company posted a GAAP EPS loss of $4.38 for the year due to restructuring costs and investments in areas like quantum computing and AI. However, its adjusted EPS of $0.13 beat expectations.

Growth Drivers Powering Intel’s Vision

Intel’s latest moves show its determination to reshape its future and find new areas for growth. At CES 2025, the company introduced a new automotive platform aimed at speeding up the shift to electric and software-defined vehicles (SDVs). 

This platform combines high-performance computing, AI, discrete graphics, and power management, along with the Intel Automotive Virtual Development Environment created with AWS. 

By helping automakers tackle cost and scalability issues, Intel is positioning itself as a key player in the growing electric vehicle market, which could open up major revenue opportunities.

In another big step, Intel teamed up with cybersecurity company Trend Micro to better protect against advanced threats like ransomware. The partnership combines Trend Micro’s security platform with Intel’s hardware-based detection technology, improving ransomware detection by 24% compared to software-only solutions. This highlights Intel’s focus on building security directly into its hardware, giving it an edge in enterprise markets.

If these efforts succeed, they could help restore investor confidence and boost Intel’s long-term stock performance, all while supporting its broader push into cutting-edge technologies like quantum computing.

Analyst Sentiments and Market Outlook

Intel’s outlook for 2025 shows a mix of cautious hope and ongoing challenges. The company expects Q1 revenue to land between $11.7 billion and $12.7 billion, with a non-GAAP EPS of $0.00 and a GAAP loss of $0.27 per share. While these numbers highlight Intel’s struggles with profitability, they also suggest some stability compared to previous quarters, hinting at slow progress in its turnaround efforts.

Analysts, however, remain split on the stock. Out of 37 analysts, the consensus rating is a “Hold.” Only one analyst suggests a “Strong Buy,” while six lean bearish. 

This cautious outlook reflects concerns about Intel’s ability to execute on its plans and compete effectively in a tough market.

Price targets offer a bit of optimism. The average target of $23.98 suggests about 24% upside from the current price. HSBC recently upgraded Intel from “Reduce” to “Hold” with a $20 target, saying current valuations reflect concerns about its IDM 2.0 strategy. 

However, other firms have taken a more conservative stance, with Stifel cutting its price target to $21 from $25. Analysts are waiting for more proof of Intel’s ability to become a leading-edge foundry and for it demonstrate success in internal technological developments.

Conclusion 

Intel’s bold move into quantum computing, alongside its efforts in automotive innovation and cybersecurity, shows the company is far from standing still. However, with a mixed financial outlook, steep valuation metrics, and cautious analyst sentiment, the stock remains a risky bet. While there’s potential for upside if Intel executes its turnaround effectively, investors may want to wait for clearer signs of progress before making a move. For now, INTC remains a hold according to analysts.