Intel's New CEO: No Sugarcoating, All Action!

Ladies and gentlemen, buckle up! Intel's new CEO, Lip-Bu Tan, is here to shake things up and he's not mincing words. In a stunning turn of events, Tan has laid out a brutal assessment of Intel's 2024 performance and vowed to align spending with market demand. This is not your grandfather's intel anymore—it's time to get aggressive and make some tough calls!



Tan, who took the helm in March 2025, has been blunt about the company's struggles. Intel reported an annual loss of $19 billion in 2024, its first since 1986. That's a staggering figure, and Tan is not shying away from the harsh reality. He's calling for a complete overhaul of the company's approach to AI and manufacturing, and he's not afraid to make the tough decisions needed to turn things around.

So, what's the plan? Tan is focusing on three key areas:

1. Revamping Manufacturing Operations: Tan aims to improve the performance of Intel Foundry, which manufactures chips for other design companies. He plans to aggressively woo new customers and restart plans to produce chips that power AI servers. This is a bold move, but it's necessary if Intel wants to compete with the likes of TSMC and Samsung.

2. Broadening the AI Business: Tan is considering broadening Intel's AI business by looking into areas beyond servers, such as software, robotics, and AI foundation models. This is a smart move, as the AI market is expected to grow exponentially in the coming years. Intel needs to be at the forefront of this revolution, and Tan is determined to make that happen.

3. Restructuring the Company's Approach to AI: Tan is not afraid to make the tough calls needed to turn things around. He's planning to implement staff cuts to address what he views as a slow-moving and bloated middle management layer. This is a risky move, but it's necessary if Intel wants to stay competitive in the fast-paced world of technology.



But Tan's plan is not without its risks. The company's struggles in providing the level of customer and technical service as rival TSMC have led to delays and failed tests. Additionally, Intel's delayed engagement in the competitive AI chip market poses a significant risk. Competitors like Nvidia and AMD are already making significant strides in this area, and Intel will have to work hard to catch up.

Despite these challenges, Tan is confident that his plan will work. He's calling for a complete overhaul of the company's approach to AI and manufacturing, and he's not afraid to make the tough decisions needed to turn things around. This is not your grandfather's Intel anymore—it's time to get aggressive and make some tough calls!

So, what does this mean for investors? Intel's stock currently trades at about 28 times its 12-month forward earnings estimates, lower compared to AMD’s 45.08 and Nvidia’s nearly 30. This reflects market sentiment about Intel’s growth prospects and could impact the company's ability to attract investors and raise capital for its restructuring efforts.

But don't count Intel out just yet. Tan's plan is bold and aggressive, and it's exactly what the company needs to turn things around. If Intel can successfully execute Tan's proposed changes, it could enhance its competitiveness and profitability. But the risks and challenges associated with these changes could hinder Intel's ability to adapt and innovate, potentially impacting its long-term prospects.

So, are you ready to ride the Intel rollercoaster? It's going to be a wild ride, but with Tan at the helm, Intel is poised for a comeback. Stay tuned, folks—this is going to be one heck of a show!

Ask Aime: What is Intel's new CEO's plan to address the company's struggles and improve its AI and manufacturing operations?