Intel Slashes Forecasts and Jobs—Is This the Beginning of the End or a Comeback Story?

Intel’s first-quarter results for 2025 painted a mixed picture, marked by a modest financial beat but overshadowed by weak forward guidance and deep-rooted structural challenges. Under the newly appointed CEO Lip-Bu Tan, who took charge just five weeks ago, the company reported adjusted earnings of $0.13 per share on revenue of $12.7 billion—both surpassing Wall Street expectations. Gross margins reached 39.2%, higher than the guided 36%, buoyed by stronger-than-expected sales of Xeon and Raptor Lake chips. Yet, despite the better-than anticipated quarter, the market reacted sharply to the company’s June quarter forecast of $11.2 billion to $12.4 billion in revenue, well below the consensus of $12.8 billion. Intel shares tumbled over 8% in early trading following the announcement.