June 13, 2025 | New York — Intel Corporation (NASDAQ: INTC) remains in a turbulent position as its stock continues to slide, deepening a multi-year slump despite a bold restructuring effort led by new CEO Lip-Bu Tan. On Thursday, Intel shares dropped 1.97% to close at $20.36, capping off another tough session for the embattled semiconductor firm.
Over the past five years, Intel stock has shed a staggering 66% of its value, a reflection of persistent strategic missteps, fierce competition from rivals, and delayed innovation in critical chip segments. In the last year alone, the stock is down nearly 33%, with a sharp 8.79% monthly decline underscoring continued investor unease.
However, there are signs of a possible shift in direction. Earlier this week, INTC stock saw a brief rebound, gaining nearly 8% in a single session as optimism grew around the company’s aggressive turnaround strategy.
A New Chapter Under CEO Lip-Bu Tan
Since taking the helm earlier this year, CEO Lip-Bu Tan has initiated sweeping changes aimed at restoring profitability and operational focus. His no-nonsense approach includes strict profitability thresholds: no new product will proceed unless it is projected to deliver at least a 50% gross margin. Additionally, Intel is reportedly reassessing and restructuring underperforming partnerships and has scaled back workforce layers to streamline decision-making.
One of Tan’s first major moves was to implement a 20% workforce reduction, following an earlier round of 15,000 layoffs. While these measures have drawn mixed reactions, investors are watching closely to see whether leaner operations and a refocus on engineering can yield meaningful financial recovery.
Intel reported a widened net loss of $821 million in Q1 2025, more than double the $381 million loss in the same quarter last year. Revenue remained flat at $12.7 billion, signaling ongoing challenges in revitalizing growth.
Mixed Investor Sentiment
While Intel’s all-time return still stands above 50,000%, its recent track record has tarnished its blue-chip reputation. The stock is barely positive year-to-date and continues to trail most major chipmakers in performance.
Analysts remain split on Intel’s near-term prospects. Some view the restructuring as a necessary correction after years of stagnation, while others are skeptical about the company’s ability to regain competitive momentum in a rapidly evolving semiconductor landscape.