Intel had an eventful 2025, appointing a new CEO and receiving investments from the US government, Nvidia, and SoftBank, pushing its stock up over 80%. However, the crucial manufacturing segment still lacks a major customer, hindering profitability. Analysts remain cautiously optimistic about Intel’s turnaround prospects.

Intel’s history as a chip innovator is marred by recent missteps that put its manufacturing segment behind competitors like TSMC. Former CEO Gelsinger’s turnaround efforts faced investor skepticism due to high costs and uncertainty. The arrival of new CEO Lip-Bu Tan renewed hope in Intel’s potential, but challenges remain in regaining market share.

A $9 billion US government investment in Intel underscored the importance of onshoring semiconductor manufacturing for national security. Critics question the government’s stake in private companies, but analysts see opportunities for Intel to influence trade policy and secure major customers like Apple. SoftBank and Nvidia investments further boosted investor sentiment.

Intel’s success hinges on proving its latest manufacturing processes with upcoming chip releases. Securing external customers for its new processes is critical for long-term viability. Rumors suggest Apple may use Intel’s manufacturing, but the company must act swiftly to maintain momentum and compete with TSMC.

Analysts remain cautious about Intel’s turnaround timeline, noting the complexity of fixing past mistakes. Success with new processes and securing external customers will be key indicators of Intel’s future success. The chipmaker faces stiff competition and must navigate challenges to regain its position as a leader in the industry.

Read more at Yahoo Finance: Intel stock soared in 2025. But the chipmaker still has a long road ahead.