Intel shares drop over 8% on weak revenue forecasts despite CEO's turnaround plans

From Yahoo Finance: 2025-04-25 02:30:00

Intel’s shares dropped over 8% on weak revenue forecasts despite new CEO Lip-Bu Tan’s plans to revitalize the company. Tan aims to focus on core engineering, cut unnecessary work, and boost innovation. The company is looking to attract more customers and collaborate with TSMC amid growing tariff tensions.

Tan’s strategy to sharpen Intel’s AI products has raised questions on how the company plans to compete with Nvidia in the AI sector. Intel’s past acquisitions have not helped much in AI, and it now faces challenges in catching up to competitors. The stock has gained 7.2% this year but trades at a higher P/E ratio than Nvidia and AMD.

Read more: Intel shares fall as dour forecasts overshadow CEO’s turnaround promises