Intel struggles as computer makers choose older chips instead of new AI models. Companies buy more previous Raptor Lake processors rather than the newer Lunar Lake or Meteor Lake chips. This forces Intel to keep making old chips at factories meant for newer products. The manufacturing lines run full blast but cannot make enough of either chip type. Such production problems limit how many processors reach customers.
Intel reported flat sales numbers in early 2025, with revenue near $12.7 billion. The company lost $821 million during this period, disappointing market watchers. Intel stock fell over five percent after markets closed when the news came out. Company leaders blamed careful buying from computer builders who worry about trade fights between America and China.
Buyers also hesitate to pay extra for AI features they might not use much right away. CEO Lip-Bu Tan plans to cut spending by $500 million. The company will reduce building costs by about $2 billion throughout 2025. Workers will lose jobs during the spring months, though exact numbers remain secret. Intel wants to build up its data center business where Xeon chips sell well.
The firm prepares to launch Panther Lake chips late next year. They hope software creators make programs that use built-in AI abilities. Better software might convince more people to buy computers with AI chips inside them. The slow sales show a gap between what tech companies offer and what everyday users want or need right now. Intel must prove that AI brings real benefits to regular computer users.
Intel reported flat sales numbers in early 2025, with revenue near $12.7 billion. The company lost $821 million during this period, disappointing market watchers. Intel stock fell over five percent after markets closed when the news came out. Company leaders blamed careful buying from computer builders who worry about trade fights between America and China.
Buyers also hesitate to pay extra for AI features they might not use much right away. CEO Lip-Bu Tan plans to cut spending by $500 million. The company will reduce building costs by about $2 billion throughout 2025. Workers will lose jobs during the spring months, though exact numbers remain secret. Intel wants to build up its data center business where Xeon chips sell well.
The firm prepares to launch Panther Lake chips late next year. They hope software creators make programs that use built-in AI abilities. Better software might convince more people to buy computers with AI chips inside them. The slow sales show a gap between what tech companies offer and what everyday users want or need right now. Intel must prove that AI brings real benefits to regular computer users.
