The results mark a turning point for Intel, which has struggled to maintain relevance despite fierce competition and manufacturing setbacks.
After a roaring 2024 that saw its first annual loss in nearly four decades, the company is now leaning on strategic investments and operational discipline to restore investor confidence.
SILENTING THE SHIP
Intel also received support during the quarter from multibillion-dollar investments from Nvidia and Japan’s SoftBank, as well as a stake from the US government, measures that provided a financial cushion as it tries to revive growth.
These investments, along with Tan’s turnaround efforts, have provided a lifeline to the stock, which has rebounded more than 90% in 2025 from the last close, outperforming AI chip leaders Nvidia and AMD. Intel trades at a trailing twelve-month price-to-earnings ratio of 71.51 versus 30.49 for Nvidia and 40.14 for AMD. “Intel has turned a corner and is steadying the ship,” said Ben Bajarin, CEO of Creative Strategies. “It feels like strong preparation for 2026.” Intel shares last rose nearly 2% in morning trading.
TURN OVER FAR FROM OVER
Intel said demand for its chips has outpaced supply, especially in data centers where operators are upgrading central processing units (CPUs) to support AI workloads.
However, Chief Financial Officer Dave Zinsner warned that yields for the advanced 18A manufacturing process will remain below industry standards and will not reach “acceptable levels” until 2027.
Tan also sold a majority stake in Altera and changed Intel’s capital strategy to rely more on external liabilities, following criticism of his predecessor’s spend-intensive approach. He has scaled back Intel’s manufacturing ambitions and cut more than 20% of its workforce.
“We understand the desire to claim victory for the embattled company, but this battle is far from over; perhaps it is better to call it a draw for now,” Bernstein analysts said.
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