Latest news with #PatGelsinger
Yahoo
08-08-2025
- Business
- Yahoo
Intel CEO responds after Trump calls for resignation
Intel (INTC) chief Lip-Bu Tan responded late Thursday, calling reports about his career "misinformation." In a letter to staff, he said the company was engaging with the Trump administration. 'There has been a lot of misinformation circulating about my past roles . . . I want to be absolutely clear: Over 40+ years in the industry, I've built relationships around the world and across our diverse ecosystem — and I have always operated within the highest legal and ethical standards,' Tan wrote. President Trump early Thursday called for the resignation of Intel (INTC) CEO Lip-Bu Tan in a post on social media. "The CEO of INTEL is highly CONFLICTED and must resign, immediately," Trump wrote on Truth Social, the social media platform he owns. "There is no other solution to this problem. Thank you for your attention to this problem!" Tan was named Intel's CEO back in March, taking over from Pat Gelsinger's tumultuous tenure that saw the company's stock plummet and the chipmaker fall behind in the AI race. Investors cheered Tan's appointment, with the stock rising as much as 15% after the news, and Wall Street analysts as well as current and former executives and employees saw Tan as the best possibility to succeed in turning around the troubled company. Intel stock climbed 0.9% premarket on Friday in the aftermath of Trump's post. Intel issued a statement following Trump's comments, emphasizing the its commitment to "advancing US national and economic security interests" and to making investments "aligned with the President's America First agenda," including domestic semiconductor manufacturing. "We look forward to our continued engagement with the Administration," the statement concludes. In April, a Reuters report detailed Tan's wide-ranging investments in Chinese companies made through his VC firm, Walden International. The outlet found that the firm "remains invested in 20 funds and companies alongside Chinese government funds or state-owned enterprises, according to Chinese corporate databases." Tan has served on boards and in various executive roles at 14 firms in the semiconductor space, most notably including his tenure as CEO of Cadence Design Systems, a chip design software company. Trump's post came a day after one of his top Senate allies, Republican Tom Cotton, wrote a letter to Intel's board chair questioning Tan's China ties. "Intel is required to be a responsible steward of American taxpayer dollars and to comply with applicable security regulations," Cotton wrote, pointing to Intel's nearly $8 billion grant from the CHIPS Act. "Mr. Tan's associations raise questions about Intel's ability to fulfill these obligations." Intel did not immediately respond to Yahoo Finance's request for comment. "Lip-Bu is a legend in the semi industry, and his ties to many companies, both in and out of China, are well known," Bernstein analyst Stacy Rasgon wrote in a note to investors Thursday following Trump's Truth Social post. "We don't believe Lip-Bu is 'conflicted,' though given the nature of this administration the [Lip-Bu Tan's] China ties ... are seemingly creating an increasingly bad look," Rasgon added. "And unfortunately, unlike other tech CEOs Lip-Bu does not appear to have cultivated the kind of personal relationship with Trump that would help to assuage his ire." Intel shares are up just 1.8% for the year, lagging other chip stocks such as AMD (AMD), Broadcom (AVGO), and market leader Nvidia (NVDA). In late July, Intel stock sank after the company reported that it would cut its workforce by 15% in an attempt to pare costs as it struggles to revive its ailing chip manufacturing business. Intel both designs and manufactures chips for itself and has, in recent years, tried to produce chips for third-party customers to boost its manufacturing business. So far, efforts have fallen short. The company said in its latest earnings report that it's scrapping an attempt to make its latest manufacturing process technology, called 18A, available to its customers, something analysts had been calling crucial to its turnaround efforts and ability to catch up to rival chip manufacturer TSMC (TSM). Laura Bratton is a reporter for Yahoo Finance. Follow her on Bluesky @ Email her at Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
08-08-2025
- Business
- Yahoo
Intel CEO responds after Trump calls for resignation
Intel (INTC) chief Lip-Bu Tan responded late Thursday, calling reports about his career "misinformation." In a letter to staff, he said the company was engaging with the Trump administration. 'There has been a lot of misinformation circulating about my past roles . . . I want to be absolutely clear: Over 40+ years in the industry, I've built relationships around the world and across our diverse ecosystem — and I have always operated within the highest legal and ethical standards,' Tan wrote. President Trump early Thursday called for the resignation of Intel (INTC) CEO Lip-Bu Tan in a post on social media. "The CEO of INTEL is highly CONFLICTED and must resign, immediately," Trump wrote on Truth Social, the social media platform he owns. "There is no other solution to this problem. Thank you for your attention to this problem!" Tan was named Intel's CEO back in March, taking over from Pat Gelsinger's tumultuous tenure that saw the company's stock plummet and the chipmaker fall behind in the AI race. Investors cheered Tan's appointment, with the stock rising as much as 15% after the news, and Wall Street analysts as well as current and former executives and employees saw Tan as the best possibility to succeed in turning around the troubled company. Intel stock climbed 0.9% premarket on Friday in the aftermath of Trump's post. Intel issued a statement following Trump's comments, emphasizing the its commitment to "advancing US national and economic security interests" and to making investments "aligned with the President's America First agenda," including domestic semiconductor manufacturing. "We look forward to our continued engagement with the Administration," the statement concludes. In April, a Reuters report detailed Tan's wide-ranging investments in Chinese companies made through his VC firm, Walden International. The outlet found that the firm "remains invested in 20 funds and companies alongside Chinese government funds or state-owned enterprises, according to Chinese corporate databases." Tan has served on boards and in various executive roles at 14 firms in the semiconductor space, most notably including his tenure as CEO of Cadence Design Systems, a chip design software company. Trump's post came a day after one of his top Senate allies, Republican Tom Cotton, wrote a letter to Intel's board chair questioning Tan's China ties. "Intel is required to be a responsible steward of American taxpayer dollars and to comply with applicable security regulations," Cotton wrote, pointing to Intel's nearly $8 billion grant from the CHIPS Act. "Mr. Tan's associations raise questions about Intel's ability to fulfill these obligations." Intel did not immediately respond to Yahoo Finance's request for comment. "Lip-Bu is a legend in the semi industry, and his ties to many companies, both in and out of China, are well known," Bernstein analyst Stacy Rasgon wrote in a note to investors Thursday following Trump's Truth Social post. "We don't believe Lip-Bu is 'conflicted,' though given the nature of this administration the [Lip-Bu Tan's] China ties ... are seemingly creating an increasingly bad look," Rasgon added. "And unfortunately, unlike other tech CEOs Lip-Bu does not appear to have cultivated the kind of personal relationship with Trump that would help to assuage his ire." Intel shares are up just 1.8% for the year, lagging other chip stocks such as AMD (AMD), Broadcom (AVGO), and market leader Nvidia (NVDA). In late July, Intel stock sank after the company reported that it would cut its workforce by 15% in an attempt to pare costs as it struggles to revive its ailing chip manufacturing business. Intel both designs and manufactures chips for itself and has, in recent years, tried to produce chips for third-party customers to boost its manufacturing business. So far, efforts have fallen short. The company said in its latest earnings report that it's scrapping an attempt to make its latest manufacturing process technology, called 18A, available to its customers, something analysts had been calling crucial to its turnaround efforts and ability to catch up to rival chip manufacturer TSMC (TSM). Laura Bratton is a reporter for Yahoo Finance. Follow her on Bluesky @ Email her at Sign in to access your portfolio
Yahoo
31-07-2025
- Business
- Yahoo
This Is the Best Reason to Invest in Intel Now. And It Might Be the Only One.
Key Points Following a CEO change, Intel posted another lackluster quarter with flat revenue and a loss. The company is scaling back operating costs and capital expenditures. The broader AI boom gives the company a shot at a recovery. 10 stocks we like better than Intel › Intel (NASDAQ: INTC) changed its messenger, but the message stayed the same. After pushing out CEO Pat Gelsinger and bringing in Lip-Bu Tan, the former CEO of Cadence Design Systems, to run the company, the legacy chipmaker reported another disappointing quarter last week in Tan's first full quarter as the CEO. The stock finished down 8.5% on the news. Revenue in the quarter was flat at $12.9 billion, though that was well ahead of the consensus at $11.9 billion. Revenue in the PC-focused Client Computing Group fell 3% to $7.9 billion, while Data Center and AI was also weak, up just 4% to $3.9 billion. Foundry, its other core business, reported revenue up 3% to $4.4 billion. Some segments have overlapping revenue, leading to $4.4 billion in intersegment eliminations. After it announced a goal of cutting 20% of its workforce in April, Intel said it had achieved a workforce reduction of about 15%, and is aiming to cut non-GAAP (generally accepted accounting principles) operating expenses to $17 billion for the year. Those cost cuts weren't enough to save the bottom line as gross margin tumbled again, falling from 38.7% to 29.7 % due to an $800 million non-cash impairment for accelerated depreciation related to tools with no reuse potential and $200 million in one-time costs. Those charges reduced gross margin by 800 basis points, meaning it would have fallen just 100 basis points without them. On the bottom line, Intel reported an adjusted loss per share of $0.10, down from $0.02 in the quarter a year ago, and below expectations of $0.01 per share. Without that impairment, the company would have reported an adjusted profit of $0.10 per share. Intel is scaling back its ambitions A theme of the report was right-sizing the business in order to meet demand, rather than investing ahead of demand. On the call, Tan summed up this strategy, saying, "I do not subscribe to the belief that, 'If you build it, they will come.' Under my leadership, we will build what customers need, when they need it, and earn their trust, through consistent execution." In line with that thinking and in addition to the layoffs and targeted reduction in operating expenses, Intel is also aiming to reduce its capital expenditures to $18 billion for the year. That includes abandoning projects in Germany and Poland, and consolidating assembly and test operations in Costa Rica into larger sites in Vietnam and Malaysia. It also said it would slow the pace of construction at a new foundry in Ohio to ensure spending on it matches demand. Due to a pull-forward effect from tariff fears, the company also expects the second half of the year to be below the seasonal level. In its third-quarter guidance, it called for revenue of $12.6 billion to $13.6 billion, a slight decline at the midpoint, and it sees break-even EPS. Intel's 18A process may be its most consequential project, and one that Intel bulls had hoped will drive profitability in the foundry unit, opening it up to third-party customers and potentially making it competitive with TSMC. Intel began the start of production wafers at its plant in Arizona in the quarter, a key milestone. Tan said 18A is the foundation of the next three generations of Intel client and server products and the company is committed to fully scaling the technology. Can Intel turn it around? While Tan deserves some time to execute a turnaround, for which cost-cutting is the first step, the struggles are only magnified when you compare Intel to its peers. Virtually every semiconductor stock is thriving in the current AI boom, which has been the biggest windfall in the sector arguably since the dot-com era. Not only is Intel unable to grow right now, it's unable to do so at a time when demand for all things AI is soaring. Peers like Nvidia, AMD, and Micron are all seeing strong growth, and even stocks of legacy tech companies like IBM and Oracle have soared lately on excitement for their AI-related products. While Intel is facing myriad challenges and has been unable to turn a profit, it may only take one success to rewrite the narrative in the stock. For now, though, that still seems elusive, and a downturn in the industry would set back its turnaround hopes even further. At this point, Intel needs to show evidence that a turnaround is underway before it's investable, but the frothiness in the chip sector and the broad market offers some upside if the company can take the first step toward recovery. Should you buy stock in Intel right now? Before you buy stock in Intel, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Intel wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $633,452!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,083,392!* Now, it's worth noting Stock Advisor's total average return is 1,046% — a market-crushing outperformance compared to 183% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 29, 2025 Jeremy Bowman has positions in Advanced Micro Devices, Micron Technology, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool has positions in and recommends Advanced Micro Devices, Cadence Design Systems, Intel, International Business Machines, Nvidia, Oracle, and Taiwan Semiconductor Manufacturing. The Motley Fool recommends the following options: short August 2025 $24 calls on Intel. The Motley Fool has a disclosure policy. This Is the Best Reason to Invest in Intel Now. And It Might Be the Only One. was originally published by The Motley Fool
Yahoo
27-07-2025
- Business
- Yahoo
INTC Stock Price Prediction: Where Intel Could Be by 2025, 2026, and 2030
Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below. Analysts are saying that Intel (INTC) could hit $2,000 by the year 2030. Bullish on INTC? You can invest in Intel on SoFi with no commissions. If it's your first time signing up for SoFi, . Plus, get a 1% bonus if you transfer your investments and keep them there until December 31, 2025. Intel, a tech titan powering up your laptop, smartphone and maybe even your refrigerator, has seen its share of highs and lows. But what does the future hold for Intel's stock price? If you're considering investing in this chip giant or already own shares, you're probably wondering where the stock is headed. Let's breakdown Intel's 2025, 2026 and 2030 stock predictions. Current Overview of Intel Stock Intel (INTC) is one of the world's leading semiconductor companies. The stock has been trading around $18 – $21 per share, with a market cap of roughly $99.67 billion. Intel, once the undisputed leader of the chipmaking world, has been facing intense competition from the likes of AMD and Nvidia. With the rise of AI, cloud computing and 5G, these competitors are gaining market share and Intel has had to rethink its strategy. Recent headlines surrounding Intel focus on its massive investments in chip manufacturing facilities, particularly in the U.S. Intel's CEO, Pat Gelsinger, has made it clear they're in for the long haul with plans to reclaim dominance by 2025. While Intel is still a big player in the semiconductor game, the stock has been relatively stagnant due to delays in their chip production road map, which hasn't helped investor confidence. Don't Miss: Be part of the breakthrough that could replace plastic as we know it — invest in Timeplast before the July 31st deadline and help revolutionize a $1.3T industry. Warren Buffett once said, "If you don't find a way to make money while you sleep, you will work until you die." Here's how you can earn passive income with just $100 today. Despite all this, Intel's fundamentals remain solid. With an annual revenue of around $53.1 billion in 2024 and a current price-to-earnings (P/E) ratio of around -5.01, Intel looks undervalued compared to its competitors. But is now the time to buy? Let's dig into the predictions. Intel Stock Price Prediction for 2025 Currently, Intel's stock is trading at $22.85, but analysts aren't overly optimistic about its short-term prospects. While Intel has made large investments in manufacturing to reclaim market share, experts predict that 2025 might be another challenging year. Due to strong competition from AMD and Nvidia and Intel's struggles to innovate quickly enough, forecasts suggest the stock may remain flat or experience modest growth, potentially reaching $22.85 in June. Fundamental analysis highlights concerns over Intel's ability to meet production goals and revive its server processor business. The company's EBITDA may see only a minor uptick – around 5% – with limited gains expected from its AI and 5G chip divisions. Delays in product rollouts or further missteps in execution could push the stock toward the lower end of this range, keeping investors on edge. Intel Stock Price Prediction for 2026 Intel could still face an uphill battle by 2026. With aggressive competition and concerns over execution, analysts are cautious. Predictions suggest Intel's stock price may rise at the beginning of the year but fall to as low as $10.17 by the end of 2026, unless the company can stabilize its manufacturing and product strategy. The predicted P/E ratio might hold steady at 15 to 17, signaling the market's continued skepticism about Intel's growth potential. Revenue growth is expected to be sluggish, with estimates of around $65 billion. If Intel fails to gain traction in the AI and data center markets, it could see further stagnation, leaving the stock price on the lower end of expectations. Investors looking for substantial gains might need to hold out until Intel shows clearer signs of turning its business around. Intel Stock Price Prediction for 2030 Looking further ahead to 2030, Intel's stock price could rise to between $30 and $40. This long-term prediction is driven by several macro trends, such as the continued expansion of 5G, AI and the Internet of Things (IoT), all of which require the kinds of chips Intel is working hard to dominate. If Intel can execute on its ambitious manufacturing goals and continue to innovate, it stands to benefit greatly from these booming industries. By 2030, experts anticipate Intel's P/E ratio to stabilize around 22, with annual revenue surpassing $80 billion. The company's market cap could easily exceed $300 billion, assuming it holds its ground against competitors and maintains solid profit margins. That said, competition from Nvidia and AMD is expected to remain fierce and any major setbacks could slow Intel's climb to the top. Recommended: $100k+ in investable assets? Match with a fiduciary advisor for free to learn how you can maximize your retirement and save on taxes – no cost, no obligation. Unlock pro-level trading, without the pro-level fees: Sign up for Generic Trade and trade at $0.59 per side on futures and options, or tour the platform for a free. Methodology for Stock Price Prediction When predicting stock prices, we rely on technical analysis, fundamental analysis and expert opinions. Technical analysis examines historical price data, trends and chart patterns to estimate future price movements. Fundamental analysis dives into the company's financials – think revenue, earnings, debt and growth prospects. Expert opinions from analysts are factored in to get a broader view. Analysts typically look at Intel's product road map, competition, market trends and potential risks. While no prediction is guaranteed, this blend of approaches gives us a reasonable outlook on where Intel might be heading in the coming years. This article INTC Stock Price Prediction: Where Intel Could Be by 2025, 2026, and 2030 originally appeared on Sign in to access your portfolio
Yahoo
26-07-2025
- Business
- Yahoo
'I do not subscribe to the belief that if you build it, they will come' says Intel's new CEO, calling past investments 'unwise and excessive'
When you buy through links on our articles, Future and its syndication partners may earn a commission. Well, nobody thought it was going to be pretty, but Intel's Q2 earnings reports and related forecasts are even uglier than I anticipated. That's primarily because the company is so keen on having demand before investing in production that it admits it might have to ditch its next-gen 14A fabrication node if it can't get a "significant" customer. That's according to a 10-Q (quarterly report) filing to the SEC. Intel explains: "If we are unable to secure a significant external customer and meet important customer milestones for Intel 14A, we face the prospect that it will not be economical to develop and manufacture Intel 14A and successor leading-edge nodes on a go-forward basis. "In such event, we may pause or discontinue our pursuit of Intel 14A and successor nodes and various of our manufacturing expansion projects." Intel CEO Lip-Bu Tan explains in the company's earnings call that this is part of a new, more cautious approach: "I do not subscribe to the belief that if you build it, they will come. Under my leadership, we will build what customers need, when they need it and earn their trust through consistent execution." This, in comparison to the previous Pat Gelsinger-led approach which "bet the whole company on 18A." No more betting, it seems: "Unfortunately, the capacity investment we made over the last several years were well ahead of demand and were unwise and excessive. Our factory footprint has become needlessly fragmented… Our last full fiscal year of positive adjusted free cash flow was 2021. This is completely unacceptable." In fact, it seems Lip-Bu Tan is taking a no-nonsense approach in general, and no doubt is keen on emphasising that to investors who are concerned about their dosh: "I'm also instituting a policy where every major chip design need to be personally reviewed and approved by me before tape-out." So, the belt must tighten, and Intel must only make what it can sell. Which means 14A doesn't happen unless it has a big customer to sell to. On the client side, the US chip giant is currently churning chips out of its 18A node for upcoming (2025) Panther Lake mobile chips and (2026) Nova Lake desktop chips. 14A is the successor to this, and while previous rumour had it that Intel might shift customers over to 14A ASAP, it's looking like the company is changing tact. In fact, the Intel CEO points out that 18A is set to go for quite some time: "Intel 18A is the foundation of at least the next 3 generations of Intel client and server products, and we remain committed to ramping this technology to scale." When asked about whether 18A can carry the business if 14A fails, Intel VP and CFO David Zinser responds: "We actually won't get to peak volumes on 18A until probably the beginning of the next decade. So this is going to be a node that we use for a very long time, and we're expecting a really good ROI on it." If that ends up panning out and 18A carries Intel along, I suppose the ironic thing will be that it might lend some weight to Gelsinger's decision to bet everything on the process. While Intel is certainly very serious about all this belt tightening and market caution—lest we forget all the recent layoffs and a new "plan to reduce our headcount by approximately 15%"—many are keen to point out that the 14A abandonment stuff could be more of a strategic threat. As in, a "help us, or else" to the US government. That would make sense, because Intel plays a big part in the US's technological self-reliance, not to mention being somewhat of a poster child for the US tech industry in general. Given how much the current Trump administration seems to like isolationist and 'America-first' policies, and given how keen it is on bringing chip manufacturing on-shore, the looming threat of a dead Intel node could prompt the US government to step in and help out. Who knows what form this could take—there's been plenty of speculation over the last few months, but no one can say for sure—but a part-nationalised Intel isn't exactly far-fetched. The company's already developing chips for the government for national security, after all. Whatever the reason for the 14A comments, it's clear that Lip-Bu Tan is serious about a lower risk approach moving forward: "There are no more blank checks. Every investment must make economic sense. We will build what our customers need, when they need it, and earn their trust through consistent execution."
