Intel Stock Surges 5.24% on AI Outsourcing Plan

Intel Corporation’s stock experienced a significant surge of 5.24% on June 24, 2025, reaching $22.30. This upward movement was driven by investor optimism in response to the company's aggressive cost-cutting measures under the leadership of its new CEO, Lip-Bu Tan. The semiconductor giant announced a strategic decision to outsource a substantial portion of its marketing operations to Accenture’s AI-powered services. This move is expected to result in considerable operational cost savings, potentially reaching hundreds of millions of dollars.

This restructuring is part of Intel’s broader effort to return to profitability after years of declining revenue and market share losses in the competitive AI chip landscape. By leveraging Accenture’s AI technology, Intel aims to enhance customer engagement, automate complex processes, and analyze market data more efficiently. The transition will impact Intel’s global marketing workforce, with employees learning their individual fates by July 11, 2025.

Intel’s decision to outsource marketing functions to Accenture represents a significant shift in its approach to customer engagement and brand management. Historically, Intel has had substantial marketing expenditures, totaling $856 million on advertising alone in 2024. This figure has decreased from $950 million in 2023 and $1.2 billion in 2022. The broader marketing, general, and administrative expense category reached $5.5 billion in 2024, indicating potential cost savings in the hundreds of millions of dollars range. This outsourcing strategy aligns with broader industry trends where companies are increasingly using AI to support and replace entire job categories.

Accenture’s role in this partnership extends beyond traditional consulting services. The collaboration emphasizes leveraging AI-driven technologies to help Intel move faster, simplify processes, and implement best practices while managing spending more effectively. Accenture’s expertise in digital transformation and AI implementation positions it as a strategic partner in Intel’s broader turnaround efforts, particularly as the chipmaker struggles with technological delays and lost market share in critical segments.

Intel’s stock performance on June 24, 2025, showed remarkable strength with a 5.24% gain, closing at $22.30 compared to the previous close of $21.19. The stock demonstrated significant volatility throughout the trading day, with a range between $21.33 and $22.56. Despite the daily gains, Intel’s broader performance remains challenging, with year-to-date returns of 11.25% contrasting sharply with negative returns over longer periods. The partnership announcement appears to have provided Intel with much-needed positive momentum, as investors view the cost-cutting measures and AI integration as necessary steps toward financial recovery. However, analysts remain cautious about Intel’s prospects, with price targets ranging from $14.00 to $28.30 and an average target of $21.29, barely above the current trading price. The forward P/E ratio of 78.74 suggests high expectations for future earnings recovery.