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Intel's (INTC) new CEO, Lip-Bu Tan, is focused on doing better for the legacy chipmaker's customers and shareholders. Yahoo Finance Tech Editor Dan Howley sits down with Madison Mills and Invesco chief global market strategist Kristina Hooper to discuss Intel's turnaround efforts under its new leadership.
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Intel's new CEO, Lip Bu Tan, saying shareholders and customers deserve better at an event this week. Here with more on the planned turnaround for the company, Yahoo Finance tech editor, Dan Howley. Dan, what are you looking at?
Yeah, Maddie, this is, you know, one of the the companies that is is truly in need of a turnaround more than than any other. Uh, Intel is struggling mightily. Their share prices are off 50% over the last 12 months. They're up slightly year to date. That's largely because of the news that Lip Butan is the new CEO. Uh, during his speech last night at Intel Vision 2025, he basically laid out how he thinks he can turn the company around. And a lot of that has to do with admitting where they've gone wrong. And he said basically, uh, that they've uh, let down their customers and they need to improve, and that they will. He said he knows that this is a a difficult task, uh, that they've fallen behind on innovation, but that they're going to redouble their efforts in bringing back talent to help build back its foundry business as well as its R&D. And that's something that's very important. And he also touched on Intel's 18A chip as well as Panther Lake 18A. Is that chip that they're hoping to ensure, uh, they turn themselves into a third-party foundry, uh, for customers, basically meaning that they would use 18A for customers like Microsoft or Amazon to build their own custom chips, uh, chips. He also touched on ASICs. Uh, those are the the chips that are customized, uh, integrated circuits that companies can use for their, uh, particular needs, whether that's AI or something else, uh, and saying that they want to be able to get into that. But this is this is a company that has really struggled to meet the demand for the AI race. Uh, they've basically just kind of fallen out of it at this point. Uh, they're working to to regain there. Uh, and then they need to pull back, uh, into the PC space. Uh, they're losing market share to longtime rival AMD as well as upstarts, uh, like Qualcomm. And so that's something that he also touched on, ensuring that they offer the best capabilities in PC as well as, uh, AI. And these are the the two big tasks that Lip Butan has, has in front of him. Yeah. Not to mention turning that foundry business into a money-making venture and not something that just eats at the business. Yeah, exactly. Exactly. Big job, you know, sounds sounds easy, sounds easy. Dan, thank you so much. Really appreciate you breaking that down. Yeah.
