Shares of US chipmaker Intel gained approximately 9% in pre-market trading this week, driven by CEO Lip-Bu Tan’s aggressive cost-cutting strategy and strategic investments.
The company’s exceeding quarterly profit expectations after a long period of difficulty is seen as a significant milestone in its efforts to regain business discipline and investor confidence.
Putting the Ship Back on Course
Intel, which announced its first annual loss in nearly four decades in 2024, prioritized investments to support restructuring and growth.
In this context, large investment moves by Nvidia, SoftBank, and the US Government in the company’s shares contributed to the company’s financial stabilization process.
On the Road to Success, But Not Quite Finished
Intel announced that chip demand for data centers exceeds supply, while its chief financial officer, Dave Zinsner, stated that the advanced “18A” manufacturing process yield will only meet industry standards by 2027.
Analysts commented, “This is not a victory for now; the fight is still ongoing.”
