Intel Corporation (NASDAQ: INTC) has faced a rough patch recently, with its stock taking a significant hit. On March 18, 2025, the company’s shares dropped by 6.3% following a quarterly loss and analyst downgrades. This marks the continuation of a challenging period for the tech giant.
The company’s latest financial results reveal a tough quarter. For Q4 2024, Intel reported a 7% year-on-year decline in sales, totaling $14.3 billion. This resulted in a net loss of $126 million, a stark contrast to a $2.7 billion profit the previous year. The company cited delays in its manufacturing process and missed opportunities in the booming AI chip market as major factors behind this decline.
Adding to the concerns, Intel’s first-quarter 2025 forecast has also fallen short of Wall Street expectations. The company has projected revenues between $11.7 billion and $12.7 billion, which is below what analysts had hoped for. These struggles come on top of mounting competition in the PC chip market and challenges in Intel’s foundry business.
Intel’s leadership transition
Intel’s leadership transition has also grabbed attention. On the same day, Intel appointed Lip-Bu Tan as the new CEO, following the unexpected retirement of Pat Gelsinger. While Tan’s appointment offers a fresh direction, analysts remain cautious. Major firms like Morgan Stanley and Stifel have downgraded Intel’s stock to “neutral” and “hold,” citing the company’s ongoing challenges. However, BofA Securities upgraded it to a neutral stance, hoping the new leadership could turn things around.
To address these issues, Intel has announced several measures to cut costs, including a 15% reduction in its workforce. The company is also suspending its quarterly dividend starting in the fourth quarter of 2025. These actions are part of Intel’s effort to improve its underperforming manufacturing operations and streamline costs.
Despite these efforts, Intel’s stock remains under pressure, hovering at historically low levels. The company is facing tough competition in the semiconductor industry, and its path to recovery looks uncertain. Investors are advised to tread carefully as Intel works through its current difficulties.
