Intel's Uphill Turnaround Struggle Amid Analyst Skepticism

In August 2025, Intel Corporation (NASDAQ:INTC) continues to face a difficult turnaround process, with analysts expressing cautious optimism about the company's recovery plans. According to a recent report from Morgan Stanley, the investment bank has reiterated its "Equal Weight" rating on Intel's stock, stating that the turnaround will be a challenging one with no quick fixes.

The report notes that Intel's CEO, Lip Bu Tan, has acknowledged the significant challenges the company is grappling with, and the desire for a rapid solution does not align with the reality of Intel's situation. Specifically, the analysts have highlighted concerns about Intel's microprocessor roadmap, which they believe requires substantial improvement, as well as the company's foundry strategy, which has drawn skepticism from industry experts over the past several decades.

Moreover, Intel's current product offerings, particularly those built on the Intel 4 node, have faced scrutiny from customers, who have been assessing the limitations of these chips. With older nodes like Intel 7 and Intel 10 sold out and considered better value, Intel is struggling to gain traction in the market with its latest offerings.

Despite these challenges, Wall Street analysts currently maintain a consensus "Buy" rating on Intel's stock, with an average price target of $22, implying a potential upside of 10.55%. However, the Street-high target of $28 suggests a more modest upside of 13.84%. The article suggests that investors may find greater upside potential and lower downside risk in certain AI-focused stocks compared to Intel.