Intel (INTC) has been among the hottest technology stocks with a rally of 152% in the last 52 weeks. While the upside has been meaningful, there are ample catalysts for INTC stock in the next 12 to 24 months.
In a recent positive, Intel is set to work with a subsidiary of SoftBank (SFTBY) for making memory for artificial intelligence. The partnership is for the commercialization of Z-Angle memory that’s being touted as a “next-generation memory technology.” While the commercialization is due in fiscal 2029, the partnership underscores the focus on an innovation edge to drive growth in the coming years.
In other positive news, Intel CEO Lip-Bu Tan said that the company will be building graphics processing units to compete with the likes of Nvidia (NVDA) and AMD (AMD). This is another potential growth catalyst for the medium to long term.
Headquartered in Santa Clara, Intel is a developer, manufacturer, and seller of computing-related products and services globally. The company operates through three segments: CCG, DCAI, and Intel Foundry.
AI has been driving significant demand across the company’s product portfolio, with product diversification and innovation being the growth catalysts. Recently, the company has launched products on Intel 18A, which is the most advanced process node developed and manufactured in the U.S.
For FY25, Intel reported revenue of $52.9 billion with a gross margin of 34.8%. While CCG revenue declined by 3% on a year-on-year (YoY) basis, it was offset by 5% growth in DCAI revenue. For the same period, the company reported an operating cash flow of $9.7 billion.
With Intel indicating that demand is outpacing supply, the growth outlook is positive. Therefore, even with a rally of almost 150% in INTC stock in the last six months, the uptrend is likely to sustain.
Last month, Intel reported Q4 numbers that beat estimates on the revenue and EPS front. However, beyond the headline numbers, there are other important points to note.
First, Intel ended FY25 with a cash buffer of $37.4 billion. This allows high financial flexibility for investments. For FY26, the company has committed $9.1 billion in capex that’s likely to support growth in 2027 and beyond.
