Intel Struggles as Semiconductor Stocks Soar Amid AI Boom

Santa Clara, California — Intel is facing challenges as it struggles to attract investors in the booming artificial intelligence (AI) market. Since the launch of ChatGPT on November 30, 2022, other semiconductor companies have seen impressive stock gains, but Intel has not followed suit.

The market capitalization of Intel is currently $93 billion, with a stock price of $21.43 as of May 9, 2025, after a decline of 32% since ChatGPT’s debut. In contrast, competitors like Nvidia have experienced a staggering 592% increase in stock value during the same period, aided by their specialization in graphics processing units (GPUs) that are essential for training AI models.

Broadcom and Taiwan Semiconductor Manufacturing Company (TSMC) have also seen notable gains of 272% and 110%, respectively, due to their roles in equipping data centers and manufacturing chips designed by other companies. The VanEck Semiconductor ETF reported a total return of 93% during this time frame.

Despite being a diversified operation, Intel’s foundry segment generated $17.5 billion in revenue in 2024, which is a 7% decline year-over-year. Additionally, it reported an operating loss of over $13.4 billion, almost double from the previous year. The first quarter of 2025 brought in $4.7 billion in revenue for the foundry segment, reflecting a modest 7% year-over-year gain, though future growth appears uncertain due to market pressures.

While some investors might see Intel’s low stock price as a buying opportunity, analysts caution against this. They note that Intel continues to lose market share to TSMC and has yet to operate its foundry business profitably. The next steps for the company remain unclear, particularly as Wall Street predicts little revenue or earnings growth in the coming years.

As Intel navigates these hurdles, the narrative around its stock is mostly bearish. Investors are advised to consider other stocks that have been identified as better investments, especially given Intel’s inconsistent performance amid escalating competition.