Intel Corporation (INTC) reported total revenues of $12.9 billion for Q2, nearly flat compared to the previous year, with product revenues declining 1% to $11.8 billion. The foundry segment faced an operating loss of $3.2 billion, worsening from a $2.8 billion loss a year prior. Intel ended the quarter with $50.7 billion in debt against $21.2 billion in cash and short-term investments.
On the leadership front, President Donald Trump expressed support for Intel CEO Lip-Bu Tan amid scrutiny over Tan’s prior role at Cadence Design Systems (CDNS), which recently paid $140 million for unlawful exports to a Chinese military supplier. Trump’s backing is seen as a positive sign for investors looking for stability in Intel’s leadership during this critical period.
Tan’s strategies to turn around the company include cutting costs, optimizing management, and scaling back capital expenditures. Intel is set to enhance its competitive edge in the AI sector by providing full-stack AI solutions, including GPUs and CPUs, while adopting a new manufacturing process. Despite current challenges, analysts suggest that a turnaround could be on the horizon as Intel works to reclaim its position in the semiconductor industry.
