By The Global Business Show | GlobalFinserve.com
Intel Corporation (NASDAQ: INTC) reported better-than-expected earnings for the first quarter of 2025, but its dim revenue outlook for the next quarter and the specter of renewed trade tensions with China sent its shares tumbling more than 6% in after-hours trading.
The report marks the first earnings announcement under new CEO Lip-Bu Tan, who stepped in last month to steer the struggling chipmaker out of a multi-year innovation slump and reposition Intel in the increasingly competitive global semiconductor market.
Q1 at a Glance: Better Than Expected, But Not Enough
For Q1 2025, Intel reported:
- Adjusted EPS: $0.13 vs. $0.01 expected
- Revenue: $12.7 billion vs. $12.3 billion expected
That’s a beat on both top and bottom lines. However, performance was still down from $0.18 EPS posted in the same quarter a year ago, with revenue staying flat.
Segment-wise, Intel saw bright spots:
- Client Computing revenue: $7.6 billion (vs. $6.9 billion expected)
- Data Center & AI segment: $4.1 billion (vs. $2.9 billion expected)
- Foundry Services: $4.6 billion (vs. $4.3 billion expected)
These gains suggest Intel’s diversified business units are showing traction—but macroeconomic and geopolitical risks are casting long shadows over the company’s near-term prospects.
Q2 Outlook Disappoints: A Stark Warning from the Top
Intel forecasts Q2 revenue between $11.2 billion and $12.4 billion, well below Wall Street’s expectation of $12.8 billion.
CFO David Zinsner didn’t mince words:
“The current macro environment is creating elevated uncertainty across the industry… We are taking a disciplined and prudent approach to support continued investment in our core products and foundry businesses while maximizing operational cost savings and capital efficiency.”
Shares of Intel fell sharply in after-hours trading, down more than 5% to $20.40, after closing the regular session at $21.49.
The stock is now down 38% over the past 12 months, underlining investors’ skepticism about Intel’s turnaround story amid global headwinds and competitive pressure from AMD, Nvidia, and TSMC.
A CEO’s First Test: Lip-Bu Tan’s Pledge to Fix What’s Broken
At Intel Vision 2025, CEO Lip-Bu Tan made his first public remarks since taking the helm, acknowledging the company’s stumbles:
“For quite a long time, we fell behind on innovation. As a result, we have been too slow to adapt and to meet your needs. You deserve better, and we need to improve. And we will.”
It was a candid admission—but also a calculated reset. Investors and analysts alike are now watching to see whether Tan can deliver substance over soundbites.
A critical area of focus is Intel’s third-party foundry strategy, aimed at positioning the company as a global fabrication powerhouse akin to Taiwan’s TSMC.
Earlier this month, The Information reported a potential joint venture between Intel and TSMC to co-operate Intel’s chipmaking facilities. If finalized, it could give Intel the manufacturing scale and credibility it sorely needs—but also raises questions about control, margin impact, and national security scrutiny.
Trade War Risks Loom Large
Intel’s rebound efforts are also clouded by rising geopolitical tensions. President Trump’s recently unveiled “Liberation Day” trade initiative threatens to reimpose tariffs on a range of Chinese tech products—including laptops and potentially semiconductors.
Even though Intel manufactures most of its chips in the U.S., it remains deeply integrated into global supply chains and relies on system assemblers based in China. Any tariffs on finished products could trigger pricing pressures, delays, and customer churn—especially in PC markets.
What CFOs Can Learn from Intel’s Situation
Intel’s mixed results and strategic crossroads offer several key lessons for CFOs navigating similar transitions or industry turbulence:
- Manage Investor Expectations Early and Transparently
Intel beat estimates, but its weak guidance drowned out the positives. CFOs must proactively shape the narrative and prepare markets for transitional periods—especially under new leadership. - Diversify Revenue, But Communicate the Vision Clearly
Growth in data centers and foundry services is a positive sign, but without a clear road map, diversification can confuse investors. Clarity is currency in the markets. - Balance Investment with Efficiency
Intel is doubling down on capital-intensive businesses. For CFOs, the key lies in balancing bold investments with laser-focused operational efficiency—especially during market contractions. - Prepare for Geopolitical Volatility
Whether it’s tariffs, sanctions, or policy shifts, geopolitical risks must be modeled into corporate planning. CFOs need contingency strategies across supply chain, pricing, and even R&D investment. - Use Partnerships to Accelerate—but Beware Strategic Dilution
A JV with TSMC might fast-track Intel’s foundry ambitions, but could also dilute its strategic independence. CFOs should weigh short-term gains against long-term control and brand strength.
Final Word
Intel’s Q1 earnings may have beaten expectations, but Wall Street’s reaction made one thing clear: investors want clarity, confidence, and concrete plans from its new leadership.
As Lip-Bu Tan takes the wheel, the path to revitalizing Intel runs through innovation, geopolitical agility, and strategic partnerships. The clock is ticking—not just on market cycles, but on rebuilding trust in one of America’s most iconic tech giants.
Tags: Intel Q1 earnings, INTC stock forecast, Lip-Bu Tan, foundry business, semiconductor industry, US-China trade war, chip tariffs, CFO strategy, Intel vs TSMC, data center revenue, tech stocks 2025