Intel is at a crossroads as the company prepares to report earnings on April 24, 2025. Investors are hoping that
Lip-Bu Tan, Intel's new CEO, can turn the company's fortunes around and stem its revenue losses. Currently, Intel is projected to report its fourth straight quarter of revenue decline with a 3.4% revenue loss, according to
Reuters, and expects a significant widening of its losses to approximately $945 million compared with a loss of $381 million a year ago. Intel continues to lose market share to
AMD in both personal computing and data center markets, while NVIDIA dominates the highly lucrative AI chip market. In addition, Intel's PC division is likely to report an 11%
revenue decrease to $6.73 billion, and its data center business is probably facing its twelfth consecutive quarter of declines. "The most important thing for Intel now is Lip-Bu Tan's playbook... How he can give investors confidence that he is the person who can turn Intel around and whether a turnaround is possible in the first place," said Hendi Susanto, portfolio manager at Gabelli Funds, which holds Intel shares.
Tan has been implementing sweeping changes as part of his turnaround plan, cutting more than 20% of the employees at Intel and a change in the leadership model to provide quicker decisions. The company is seeing significant geopolitical threats as U.S.-China trade tensions are rolling back. China is threatening to impose retaliatory
tariffs of up to 85% on all chips produced in the U.S. and along these lines has also imposed a requirement for licenses to sell some
high-end AI products to the Chinese customers. Likely, as part of this, the company is presumed to be moving the production of its 3 nm chips from Arizona to
Ireland in late 2025. Under all of these factors, Intel could eventually receive a temporary boost if PC shipments are pulled forward ahead of these tariffs that may ultimately positively impact a significant portion of Intel's sales (nearly one-third of total revenues).