Is Intel stock (INTC) undervalued? What investors need to know

Intel Corporation (INTC) is being positioned by some investors as a leveraged play on the resurgence of U.S. semiconductor manufacturing, according to a recent investor letter from the Alpha Wealth Insiders Fund.

This marks Intel’s strategic restructuring under CEO Lip-Bu Tan, which includes recentring on its core chip design business while strongly expanding its foundry operations to manufacture semiconductors for other companies.

Citing Intel’s sequential revenue growth and government-supported projects, the fund suggests the company is a direct beneficiary of the “onshoring” trend and related industry policy.

However, the letter also cautions that while Intel has significant potential, other AI-specific stocks may present a more favourable risk-reward profile for investors seeking exposure to the sector.

Intel’s stock has seen substantial volatility, gaining nearly 100% over the past year but dipping slightly in the most recent month.

This sharp rise raises the question: Is the rally justified, or is Intel stock still undervalued?

Experts note that the investors need to focus on a two-part transformation. First is a business refocusing under CEO Lip-Bu Tan, which includes doubling down on advanced chip design.

Second, there is the massive expansion of Intel Foundry, its contract manufacturing arm. Following this dual approach, Intel not only gain profits for selling its own chips but also charges fees for manufacturing others’ designs, tapping into billions in federal CHIPS Act funding.

However, risks exist. Turning around a manufacturing giant is costly and slow, with formidable competition from NVIDIA in design and TSMC in fabrication. While Q3 2025 revenue increased 6% sequentially, profitability and execution remain under scrutiny.

In comparison to high-flying pure-play AI stocks, Intel’s price may seem modest for a company central to U.S. industrial policy. However, its true worth depends on its successful execution. For investors, Intel stock is a strategic, long-term bet.