{"id":838459,"date":"2025-04-02T08:11:54","date_gmt":"2025-04-02T13:11:54","guid":{"rendered":"https:\/\/newsycanuse.com\/index.php\/2025\/04\/02\/intel-intc-stock-prediction-analysis-new-ceos-brutal-honesty-sends-shares-tumbling\/"},"modified":"2025-04-02T08:11:54","modified_gmt":"2025-04-02T13:11:54","slug":"intel-intc-stock-prediction-analysis-new-ceos-brutal-honesty-sends-shares-tumbling","status":"publish","type":"post","link":"https:\/\/newsycanuse.com\/index.php\/2025\/04\/02\/intel-intc-stock-prediction-analysis-new-ceos-brutal-honesty-sends-shares-tumbling\/","title":{"rendered":"Intel (INTC) Stock Prediction &#038; Analysis: New CEO\u2019s Brutal Honesty Sends Shares Tumbling"},"content":{"rendered":"<article id=\"post-29831\">\n<div>\n<h2>TLDR<\/h2>\n<ul>\n<li>New CEO Lip-Bu Tan acknowledges Intel has \u201cfallen behind on innovation\u201d and recovery \u201cwon\u2019t happen overnight\u201d<\/li>\n<li>Intel plans to spin off non-core businesses to focus on core operations<\/li>\n<li>Tan emphasizes rebuilding engineering strength and recruiting top talent<\/li>\n<li>Intel stock declined nearly 3% following Tan\u2019s cautious comments<\/li>\n<li>Commerce Secretary Howard Lutnick suggested withholding additional funds until chipmakers commit to more U.S. investment<\/li>\n<\/ul>\n<hr>\n<p>Intel\u2019s new CEO Lip-Bu Tan made his first major public appearance at the company\u2019s Vision 2025 conference in Las Vegas. <a href=\"https:\/\/finance.yahoo.com\/news\/cautious-ceo-comments-weigh-intel-162952453.html\">His candid assessment of Intel\u2019s challenges sent the stock down nearly 3%<\/a> as he outlined his plan to restore the struggling chipmaker to its former glory.<\/p>\n<p>Tan acknowledged that Intel has endured \u201ca tough period for quite a long time.\u201d He directly addressed the company\u2019s recent failures, stating they \u201cfell behind on innovation\u201d and were \u201ctoo slow to adapt\u201d to customer needs.<\/p>\n<p>The new CEO warned investors and customers that turning around Intel \u201cwon\u2019t be easy\u201d and \u201cwon\u2019t happen overnight.\u201d This realistic assessment contrasts with previous leadership\u2019s more optimistic timeline projections.<\/p>\n<p>In his speech, Tan outlined a plan to free up resources<a href=\"https:\/\/finance.yahoo.com\/news\/intel-spin-off-non-core-161730159.html\"> by spinning off non-core businesses<\/a>. Though he didn\u2019t specify which divisions would be considered non-core, this approach signals a more focused strategy.<\/p>\n<blockquote>\n<p>\u201cGoing forward at Intel, we will redefine some of our strategy and then free up the bandwidth. Some of the non-core business, we will spin it off, but really focus on our core business and how to expand that using AI and Software 2.0,\u201d<\/p>\n<\/blockquote>\n<p>Tan explained.<\/p>\n<figure id=\"attachment_29832\" aria-describedby=\"caption-attachment-29832\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/coincentral.com\/wp-content\/uploads\/2025\/04\/itc-stock.png\" alt=\"Intel Corporation (INTC)\" width=\"1027\" height=\"567\"  ><figcaption id=\"caption-attachment-29832\"><a href=\"https:\/\/finance.yahoo.com\/quote\/INTC\/\">Intel Corporation (INTC)<\/a><\/figcaption><\/figure>\n<h2>Rebuilding Trust Through Engineering Excellence<\/h2>\n<p>Tan repeatedly emphasized the importance of rebuilding Intel\u2019s engineering culture. Truist analysts noted that he used the word \u201cculture\u201d more than 20 times during his address, describing his focus as a \u201cbreath of fresh air.\u201d<\/p>\n<p>A key component of Tan\u2019s approach involves recruiting and retaining top engineering talent. \u201cHis priority is to recruit and retain the best engineers to empower growth and create a culture of innovation empowerment,\u201d Truist analysts wrote.<\/p>\n<p>Intel\u2019s new leader also addressed customer concerns directly. He acknowledged that customers have graded Intel\u2019s products as \u201cmodestly D\u2019s and F\u2019s\u201d in recent years.<\/p>\n<p>Tan promised to solicit customer feedback, correct mistakes, and rebuild trust through a philosophy of \u201cunder-promising and over-delivering.\u201d This has been his \u201ctrademark\u201d throughout his career, he stated.<\/p>\n<p>The new CEO committed to continuing Intel\u2019s foundry strategy, which designs and manufactures chips. \u201cGlobal demand for chip production is growing, and you need supply chains that are flexible, resilient, and secure. Intel foundry plays a crucial role,\u201d Tan said.<\/p>\n<p>Intel also plans to compete with Nvidia in the rack-scale AI server market. This comes after Nvidia replaced Intel in the Dow Jones Industrial Average in November 2024, highlighting Intel\u2019s competitive challenges.<\/p>\n<p>Tan emphasized a return to a startup mentality at the tech giant. \u201cBureaucracy kills innovation. In my career, I\u2019ve seen how small, focused teams can move very fast and innovate and take on incumbents, and we\u2019re going to practice that in Intel,\u201d he explained.<\/p>\n<p>Analyst reactions to Tan\u2019s speech were mixed<a href=\"https:\/\/finance.yahoo.com\/news\/intel-analyst-says-best-ever-131901316.html\">. While Truist called it the \u201cbest ever messaging\u201d from Intel management,<\/a> Bernstein described it as \u201cmore of an apology than a keynote\u201d that was \u201clighter on details than some might have hoped.\u201d<\/p>\n<p>Political factors may also be influencing Intel\u2019s stock performance. Commerce Secretary Howard Lutnick suggested that the administration would withhold additional funds from chipmakers until they commit to greater U.S. investment.<\/p>\n<p>This policy could particularly impact Intel, which has been one of the top recipients of government funding in the semiconductor sector.<\/p>\n<p>The company has reportedly been working with investment bankers at Morgan Stanley and Goldman Sachs to restructure its business. Options include potentially splitting its foundry division.<\/p>\n<p>Industry rumors suggest Broadcom may be interested in acquiring Intel\u2019s chip design and marketing unit. Meanwhile, Taiwan Semiconductor Manufacturing Company is reportedly eyeing Intel\u2019s chip manufacturing plants.<\/p>\n<p>Tan\u2019s focus on customer service was highlighted by Rosenblatt analysts as \u201cfundamental to turning Intel around, particularly the Foundry business.\u201d The firm also noted the importance of reshaping Intel\u2019s approach to hardware design.<\/p>\n<p>Intel\u2019s recent leadership change follows the December departure of former CEO Pat Gelsinger, who had led an initiative to revamp the company\u2019s foundry division.<\/p>\n<\/p><\/div>\n<section>\n<p>\t<img loading=\"lazy\" alt src=\"https:\/\/secure.gravatar.com\/avatar\/9eb3aeab1807087154cda7b62b4a98e3?s=95&#038;r=g\"  height=\"95\" width=\"95\" decoding=\"async\">\t<\/p>\n<div>\n<p><a href=\"https:\/\/coincentral.com\/author\/oli\/\" title=\"Posts by Oliver Dale\" rel=\"author\">Oliver Dale<\/a><\/p>\n<p>Editor-in-Chief of CoinCentral and founder of Kooc Media, A UK-Based Online Media Company. Believer in Open-Source Software, Blockchain Technology &#038; a Free and Fair Internet for all. His writing has been quoted by Nasdaq, Dow Jones, Investopedia, The New Yorker, Forbes, Techcrunch &#038; More. Contact <span \n                data-original-string='y80lBYEVgOzhK9aoVTfI2w==7f4MrWUYA4ZUFPhFca6VNk8pddvP9NW1hMCbxKD8Jx5CKw='\n                class='apbct-email-encoder'\n                title='This contact has been encoded by Anti-Spam by CleanTalk. Click to decode. To finish the decoding make sure that JavaScript is enabled in your browser.'>Ol<span class=\"apbct-blur\">****<\/span>@<span class=\"apbct-blur\">*********<\/span>al.com<\/span><\/p>\n<\/p><\/div>\n<\/section>\n<p><a href=\"https:\/\/coincentral.com\/intel-intc-stock-prediction-analysis-new-ceos-brutal-honesty-sends-shares-tumbling\/\" class=\"button purchase\" rel=\"nofollow noopener\" target=\"_blank\">Read More<\/a><br \/>\n Oliver Dale<\/p>\n","protected":false},"excerpt":{"rendered":"<p>TLDR New CEO Lip-Bu Tan acknowledges Intel has \u201cfallen behind on innovation\u201d and recovery \u201cwon\u2019t happen overnight\u201d Intel plans to spin off non-core businesses to focus on core operations Tan emphasizes rebuilding engineering strength and recruiting top talent Intel stock declined nearly 3% following Tan\u2019s cautious comments Commerce Secretary Howard Lutnick suggested withholding additional funds<\/p>\n","protected":false},"author":1,"featured_media":838460,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2965,112],"tags":[],"class_list":{"0":"post-838459","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-intel","8":"category-stock"},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts\/838459","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/comments?post=838459"}],"version-history":[{"count":0,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts\/838459\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/media\/838460"}],"wp:attachment":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/media?parent=838459"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/categories?post=838459"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/tags?post=838459"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}