"Since the appointment of CEO Lip-Bu Tan, Intel has had the wind in its sails again. Investments from large companies and the US government, strong quarterly figures, and a restoration of confidence in its chip production contributed to positive sentiment. Now that Intel has set its expectations lower than expected for Q1 2026, doubts have made a comeback. Is that justified? Intel actually beat Wall Street's expectations. Revenue was $13.7 billion this quarter, compared to an expected $13.4 billion."
"There was also more money lost at the bottom line than in the same quarter last year. Q4 2025 resulted in a net loss of $600 million, significantly more than the $100 million in Q4 2024. And although chip production yields are entirely on schedule, efficiency in this area is not yet where Tan would like it to be. It has been known for some time that Intel's turnaround was, is, and will continue to be painful."
Lip-Bu Tan's leadership coincided with renewed confidence, sizable investments, and improved chip production metrics. Q4 revenue reached $13.7 billion, beating the $13.4 billion estimate, but guidance for Q1 2026 of $11.7–$12.7 billion fell below analyst expectations. Net loss widened to $600 million in Q4 2025 from $100 million in Q4 2024. Chip production yields are on schedule, but efficiency remains below target. Large prior capital expenditures for production capacity are still ramping up and weigh on near-term returns. The PC market faces pressure from higher memory prices, prompting a strategic shift toward data-center sales and intensified competition with AMD.
Read at Techzine Global
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