Intel Faces Challenges Despite Strong Q1 Earnings, CEO Warns of Long Recovery

Intel surpassed first-quarter earnings expectations with $0.13 per share on $12.67 billion revenue, but issued a cautious outlook that led to a sharp drop in its stock price. New CEO Lip-Bu Tan acknowledged that there are 'no quick fixes' for Intel's challenges and is focusing on both immediate and long-term strategies, particularly in AI, GPUs, and edge computing. Analysts note Tan's efforts to cut bureaucracy, flatten the organization, and reconnect with foundry customers, while emphasizing that recovery will take time. Despite recent layoffs and ongoing restructuring, Tan remains optimistic about repositioning Intel for future competitiveness, though the company faces persistent headwinds, including shrinking market share and stiff competition from rivals like AMD and Nvidia. Intel's guidance for the next quarter remains subdued, reflecting ongoing industry and macroeconomic uncertainties. Tan has begun overseeing key divisions directly in hopes of accelerating decision-making and innovation.