Intel reported better-than-expected second-quarter results, with a revenue of $12.6 billion, beating estimates of $11.92 billion. The company announced a net loss of $2.9 billion due to an $800 million impairment charge. CEO Lip-Bu Tan has implemented significant cuts, including 15% of the workforce, aiming to reduce expenses by $17 billion in 2025.

Intel expects third-quarter revenue of $13.1 billion, breaking even on earnings, while analysts anticipated earnings of 4 cents per share. The chipmaker’s client computing group had $7.9 billion in sales, down 3%, while the data center group saw a 4% increase to $3.9 billion. Intel aims to regain market share in data center chips.

Lip-Bu Tan announced cuts in spending, particularly in the foundry division, which reported an operating loss of $3.17 billion on $4.4 billion revenue. The company canceled fab projects in Germany and Poland, consolidating operations in Vietnam and Malaysia. Tan emphasized the need for confirmed customer commitments before further investments are made.

Intel shares have risen 13% in 2025 after a 60% decline in 2024. The company is slowing down the construction of a chip factory in Ohio and will review all chip designs before manufacturing. Tan aims to make economically sound investments and regain market share in data center chips.

Read more at CNBC: Intel (INTC) earnings report Q2 2025