Intel reported second-quarter 2025 revenue of $12.9 billion, slightly above analyst expectations and flat year-over-year, breaking a streak of revenue declines (Intel Corporation).
However, earnings missed projections: non‑GAAP EPS came in at −$0.10, compared to the expected $0.01, while GAAP EPS was −$0.67 due to $1.9 billion in restructuring charges and impairment losses of $1 billion (Intel Corporation).
Intel reports Q2 2025 earnings with flat revenue, deeper losses, and major layoffs. Foundry growth and AI focus hint at a possible recovery ahead.
Restructuring & Workforce Reductions
• Intel will cut its core workforce by approximately 15%, reducing it from 99,500 to around 75,000 employees by year-end (AP News).
• The company is canceling planned mega‑fab projects in Germany and Poland and consolidating Costa Rica operations into Vietnam and Malaysia, while also slowing the Ohio facility build‑out (AP News).
Business Segment Breakdown
| Segment | Q2 2025 Revenue | Year-over-Year |
|---|---|---|
| Client & PC Chips | ~$7.9 B (down ~3%) | Decline |
| Data Center & AI | ~$3.9 B (up ~4%) | Growth |
| Foundry (chip manufacturing for others) | ~$4.4 B (up ~3%) | Growth (Investors.com, The Verge) |
Intel’s foundry segment continues to show modest growth, suggesting initial traction in its pivot toward becoming a chip supplier for others.
Stock Reaction & Market Position
Intel shares fell nearly 4% in after-hours trading, following a 3–4% drop on the day of results. Despite this, the stock is still up ~13% year-to-date but down ~28% over the past 12 months; market cap hovers near $98 billion (The Economic Times, Yahoo Finance).
Here’s a Stock Market View based on Intel Q2 2025 earnings report, suitable for your blog or financial analysis section:
Stock Market View: Intel Q2 2025 Earnings
Intel’s latest earnings report paints a mixed picture for investors, and the stock market has reacted cautiously. Let’s break down how this affects Intel’s market position and what investors should watch.
Market Reaction
- Intel stock dropped ~4% in after-hours trading following the Q2 results, despite revenue beating expectations.
- Year-to-date, Intel remains up around 13%, showing investor faith in long-term turnaround efforts.
- However, the stock is still down ~28% over the past 12 months, reflecting deeper structural concerns.
Investor Sentiment
- Short-term sentiment: Cautious, due to negative EPS and restructuring costs.
- Long-term outlook: Cautiously optimistic, fueled by growth in foundry and AI segments.
Key Market Drivers to Watch
- Workforce reduction: Cutting 15% of staff may improve profitability over time but adds risk to innovation capacity.
- AI and Foundry strategy: Modest growth in these areas is promising, especially as global demand for custom chip manufacturing rises.
- Fab project cutbacks: Exiting plans in Germany, Poland, and Costa Rica is a red flag for global expansion but may help stabilize operations.
- Panther Lake and 14A process: These upcoming chip launches could drive stock value if delivered on time and with performance gains.
Investment Viewpoint
- Short-term traders: May avoid Intel due to volatility and lack of near-term profit.
- Long-term investors: Might see value if Intel executes on AI, foundry, and cost-cutting plans effectively.
Intel remains a watchlist stock rather than a strong buy. It’s in a crucial transition phase—balancing restructuring pains with the potential upside of future chip technologies and manufacturing growth.
Looking Ahead: Q3 Guidance & Strategy
Intel projects third-quarter 2025 revenue between $12.6 billion and $13.6 billion, with break-even non‑GAAP EPS expected (Intel Corporation).
CEO Lip‑Bu Tan emphasized a renewed focus on efficiency, core products, and AI chip capabilities, while shifting away from the previously favored 18A process toward the emerging 14A technology (Intel Corporation).
What Readers Should Know
- Revenue stabilizes, but ongoing losses highlight unresolved challenges.
- Aggressive cost-cutting is underway—with deep workforce reductions and canceled projects—aimed at preserving capital.
- Growth in the foundry and AI segments offers a potential path forward.
- Intel’s recovery strategy centers on delivering new chips like Panther Lake, restructuring global operations, and realigning product development with market demand.
More Updates
- A primer on Intel vs AMD vs Nvidia in AI chip competition
- Background on Intel’s history of mega‑fab overinvestments and failed expansions
- Coverage of upcoming product launches like Panther Lake and Nova Lake
- Broader industry analysis, such as semiconductor industry outlook for 2025
Additionally, include backlinks from evergreen finance or tech budgeting posts to boost visibility and context for this news article.
Recommended Reading
- Investopedia: “Intel’s Sales Top Estimates, But Chipmaker Posts a Loss Amid Turnaround Efforts” (Investopedia, The Verge)
- Investor’s Business Daily: “Intel Clears Low Bar for Q2 Sales. Stock Wavers Late” (Investors.com)
- The Verge: “Intel Reveals Layoffs, Retreat from Germany, Poland, and Costa Rica” (The Verge)
Intel’s Q2 2025 results paint a picture of steady revenue but mounting losses, balanced by restructuring actions and small glimmers of growth in key segments. The upcoming quarters will test whether Tan’s aggressive strategy yields a meaningful turnaround—or if challenges persist in Intel’s recovery path.
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