Intel Corporation (NASDAQ: INTC) has experienced a turbulent period marked by strategic restructuring efforts and ongoing financial headwinds, leading to volatility in its stock price. Despite a recent rally that saw shares jump nearly 8% on June 10, 2025, driven by optimism around generative AI trends and easing trade tensions between the U.S. and China, Intel’s stock remains under pressure due to deep-rooted operational challenges and fierce competition.
The company’s financial results reflect a difficult environment. Intel reported flat revenue of $12.7 billion in Q1 2025, with earnings per share declining significantly. The outlook for Q2 remains cautious, with revenue expected to slip between $11.2 billion and $12.4 billion and earnings projected to hover around breakeven.
These figures underscore the urgency of Intel’s ongoing restructuring, which includes plans to cut over 20% of its workforce and reduce operating expenses by $1.5 billion in 2025.
Under new CEO Lip-Bu Tan, who took charge in March 2025, Intel is pursuing a cultural reset aimed at streamlining operations and accelerating innovation. The company is focusing on launching its advanced 18A process node by late 2025, targeting AI and data center markets to regain lost ground against rivals like AMD and NVIDIA.
Divestitures of non-core assets, such as selling a majority stake in Altera and offloading its NAND business, are intended to free up capital for these core priorities.
Despite these efforts, Intel faces significant risks. Market share erosion in its client computing and server segments continues, while margin pressures persist due to a higher mix of lower-margin products. Macroeconomic uncertainties, including potential recessions and supply chain disruptions, add to the challenges.
From a valuation perspective, Intel appears attractively priced relative to the broader market, with a price-to-sales ratio of 1.7 compared to 3.0 for the S&P 500 and a price-to-free cash flow ratio of 8.6 versus 20.5. However, Wall Street remains cautious, with most analysts maintaining a “hold” rating and a modest price target around $21, reflecting skepticism about the speed and success of Intel’s turnaround.
