Intel is removing its automotive business. How do I play INTC here?

Over the past few years, Intel (INTC) has navigated considerable headwinds, from executive turnover and casting delays to rising investor pressure, but rivals like Advanced Micro Devices (AMD) and Nvidia (NVDA) have earned market-leading profits. However, Intel’s vast manufacturing footprint and deep R&D engine continue to lock in demand for solid PCs and data centers.

Currently, Intel respects existing contracts, but Intel has hoisted its auto units and fired most of its staff. This unit was once tasked with designing vision processing and advanced driver assistance systems (ADAS) chips, but struggled with more lean, more specialized competitors. In the future, Intel plans to rely on Equity Position (Mbly) at Mobileye (Mbly) for autonomous driving exposure, rather than funding its own capital-intensive autochip line.

Investors should note that when they leave the Auto-Chip market, Intel will be released to focus on Higher-Margin Data Center and its growing Foundry services. This strategic pivot could encourage a revaluation of INTC stocks.

Based in California, Intel is a global high-tech company that designs and manufactures semiconductors. It focuses on client computing, data centers, AI, and foundry services. We also invest in software and autonomous driving technology through our interest in Mobileye. The company serves customers around the world with innovative chips and solutions, with a market capitalization of around $99 billion.

Intel stocks have plummeted 28% over the past year due to manufacturing delays, intense competition and PC sales losing confidence. However, in 2025, stocks rebounded, increasing by around 12%, including cost cuts, AI PC momentum and improved data center demand.

Even after the rally, Intel is still trading with an attractive 1.85x advance sales. This is about 40% discount on the median sector of three times, meaning a substantial upside potential if AI-driven margin recovery and casting growth are achieved.

Intel has recently accelerated the AI ​​push by working with OEMs like HP to provide Next-Gen AI PCS, including Elitebook X, Elitebook Ultra and EliteBook 8. These chips increase real-world apps such as Power BI and Tableau by up to 48%. Intel aims to ship over 100 million AI active processors by the end of the year.