Could Intel Stock Be the Hidden Gem in a Tariff Storm?

Intel (NASDAQ: INTC) has seen its share prices tumble roughly 11% following President Trump’s recent announcement of unprecedented tariffs, which have sparked a wave of market turmoil and threats of retaliation from trade partners. As the overall market experienced significant upheaval, the S&P 500 managed to rebound with a notable 2.5% gain, offering a glimmer of hope amidst widespread disarray.

While Intel investors have faced challenges, they aren’t alone in their plight. The sharp declines in tech stocks have been a common theme, with many peer companies related to artificial intelligence soaring earlier this year, often leaving Intel in the dust. However, the landscape of 2025 has shown a different reality, with even leading company Nvidia down by 24% year-to-date. In this context, Intel’s losses of just 2.5% seem comparatively manageable.

Investor Yiannis Zourmpanos posits that amidst the tariff-induced chaos, Intel could be strategically positioning itself for a renaissance. Zourmpanos argues that tariffs are reshaping the semiconductor industry, and Intel stands to benefit uniquely from these developments. He highlights the growing preference for U.S.-manufactured semiconductors in sensitive government operations, as defense contracts typically yield higher margins and more consistent revenue streams.

Moreover, the investor predicts that many private-sector companies will refrain from relying on foreign suppliers, prompting a shift to domestic procurement and supply chains. This could create significant headwinds for competitors like Nvidia and AMD, both heavily reliant on supply chains that include China and Taiwan. Intel may also benefit from recent currency fluctuations, as a weaker dollar could bolster its export performance.

According to Zourmpanos, these factors may enable Intel to expand its market share in both artificial intelligence personal computing and data center sectors, while simultaneously generating momentum for its U.S.-based foundry operations.

Despite the potential for transformation, analysts on Wall Street remain hesitant. Currently, Intel holds a consensus 'Hold' rating with 27 analysts refraining from making definitive statements, and only 1 recommending a 'Buy' versus 4 advising 'Sell.' The average 12-month price target sits at $23.11, suggesting an upside of around 18%, yet many are choosing to tread carefully as the market dynamics evolve.

Overall, while the ramifications of Trump's tariff strategy are still unfolding, Zourmpanos believes there’s a compelling case to re-evaluate Intel as an investment opportunity. He concludes, "In times of volatility and change, this underdog may deliver an unexpected upside that the market hasn't fully considered." Investors may need to keep a close watch on Intel as it navigates this challenging landscape, potentially turning challenges into opportunities for growth.