Intel's New CEO Has Completed His First Year. Here's Where Things Stand.

"The most visible shift was cost discipline. Headcount fell from roughly 125,200 when Tan arrived to 85,100 by year-end, a reduction driven by a 15% workforce cut announced in Q2 that carried a $1.9 billion restructuring charge. Capital expenditures dropped to $17.672 billion for the full year, down 26% from prior guidance. Non-GAAP operating expenses fell to $16.5 billion, down 15% versus 2024."

"The financial trajectory improved meaningfully. Full-year operating income came in at −$2.214 billion, an 81% improvement year-over-year. Operating cash flow reached $9.697 billion, up 17%. Cash on the balance sheet grew to $14.265 billion, up 73% year-over-year, aided by the Altera partial divestiture, Mobileye share sales, a $5.70 billion CHIPS Act disbursement, and equity investments from Nvidia ($5.0 billion) and SoftBank ($2.0 billion)."

"The Intel 18A process node moved from production wafer starts in Arizona in Q2 to a fully operational fab by Q3. By Q4, the first products on 18A shipped. Tan was direct about what remains unfinished: 'Yields continue to improve steadily...they are still below what I want them to be.'"

Intel's stock climbed 90.27% over the past year under new CEO Lip-Bu Tan, though the company's fundamental challenges persist. Tan implemented significant cost discipline, reducing headcount from 125,200 to 85,100 and cutting capital expenditures 26% to $17.672 billion. Operating income improved 81% year-over-year to −$2.214 billion, while operating cash flow increased 17% to $9.697 billion. Cash reserves grew to $14.265 billion through divestitures and strategic investments from Nvidia and SoftBank. The Intel 18A process node achieved operational status with first products shipping in Q4, though yields remain below target. However, the foundry business continued losing money every quarter, indicating the turnaround remains incomplete.

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