News
Intel is scheduled to report earnings on Thursday, April 24, 2025, with the market watching closely to see whether new CEO Lip-Bu Tan’s turnaround efforts are gaining traction. According to Reuters, the company is expected to post its fourth consecutive quarterly revenue decline, with a 3.4% drop projected for the quarter, based on data from LSEG. The report also indicates that losses may widen sharply to nearly USD 945 million, compared to USD 381 million a year earlier.
Reuters reports that Intel’s PC division is expected to see an 11% drop in revenue for the March quarter, falling to USD 6.73 billion. Meanwhile, its data center business is expected to record its twelfth consecutive decline, with revenue down 1%.
Intel has been ceding market share to AMD in both the personal computer and data center segments, while NVIDIA has surged ahead in the field of AI, according to the report.
Intel to Cut Jobs and Restructure Leadership Under CEO Lip-Bu Tan
Notably, as it reports earnings, Intel is expected to unveil plans to cut over 20% of its workforce this week, according to Bloomberg. The move marks the first major restructuring under new CEO Lip-Bu Tan, who took the helm last month.
In parallel, Tan is reshaping Intel’s leadership structure to streamline decision-making. As outlined in a memo reviewed by Reuters, the company’s data center, AI chip, and personal-computer chip divisions will now report directly to him.
Chip Strategy Under Pressure from U.S.-China Trade Rift
Another key challenge for Tan is the growing U.S.-China trade tensions. China, Intel’s largest market in 2024 with nearly one-third of its total revenue, has already issued retaliatory threats. U.S.-made chips could face tariffs of 85% or more, based on a recent notice from the China Semiconductor Industry Association, as the report notes.
According to Reuters, citing Financial Times, the company now requires a license to sell certain high-end AI chips, such as its Gaudi series, to the Chinese market, following similar restrictions imposed on NVIDIA and AMD.
An analyst cited by Reuters mentions that channeling production through Intel’s overseas fabs could help ease tariff-related pressures. According to Liberty Times, citing a report from eeNews Europe, Intel plans to shift high-volume 3nm chip production to its Fab 34 facility in Ireland later in 2025, a move highlighted in its 2024 annual report.
On the other hand, Reuters also notes that Intel may see a short-term boost in the first quarter, as manufacturers accelerated PC shipments ahead of potential tariffs.
Setbacks in AI Push
Intel’s AI strategy has also encountered setbacks. In late January, the company scrapped its Falcon Shores AI chip project. At the time, then-co-CEO Michelle Johnston Holthaus acknowledged that while AI data centers remain a strategic focus, Intel has yet to gain a significant foothold in the cloud-based AI market, according to TechCrunch.
Read more
(Photo credit: Intel)
