Intel’s shares plummeted over 8% on Friday as the company’s dismal revenue and profit outlook overshadowed its new CEO Lip-Bu Tan’s efforts to revitalize the struggling chipmaker. The decline comes amid years of poor decisions that have left Intel lagging in the lucrative artificial intelligence industry.
Tan has outlined plans to reinvigorate Intel’s culture of innovation, focusing on core engineering and streamlining administrative work. However, analysts remain skeptical about his ability to restore the company’s leadership position in manufacturing and attract new external customers.
First-quarter sales were boosted by customers stockpiling chips due to growing tariff tensions between the US and China. However, Intel faces significant challenges in catching up with AI leaders like Nvidia. The company has historically relied on buying startups to drive its AI ambitions, but analysts say it should have invested more in developing its own internal solution.
Intel’s struggles in AI are compounded by its lack of GPU intellectual property essential for AI workloads. The company’s stock has gained 7.2% so far this year, outperforming rivals Nvidia and AMD, but trades at a higher price-to-earnings ratio than its competitors.
Source: https://www.reuters.com/business/intel-shares-sag-after-downbeat-forecasts-2025-04-25