Hope springs eternal, the saying goes, and Intel (NASDAQ:INTC) CEO Lip-Bu Tan began his tenure helming the Silicon Valley pioneer with plenty of it. Since his appointment was announced on March 12th, Tan has outlined an ambitious vision centered on revitalizing Intel’s AI capabilities and expanding its foundry services – two areas he sees as key to the company’s future.
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Still, ambition alone won’t be enough to move the needle. Intel faces a long and challenging road if it hopes to reclaim its spot at the pinnacle of the technology industry.
That’s the backdrop as the company prepares to report its Q2 2025 earnings after the market closes today. With Tan’s first full quarter as CEO now complete, investors will be watching closely for tangible signs of progress. Expectations, however, remain subdued – with forecasts calling for revenue of $11.88 billion and EPS of just $0.01, both marking declines on a sequential and year-over-year basis.
Given those modest forecasts, it’s no surprise that skepticism still lingers. One investor, known by the pseudonym Stone Fox Capital, remains unconvinced that a meaningful turnaround is anywhere on the immediate horizon. While Tan may be laying the groundwork, the 5-star investor argues that any real progress could still be years away.
“Intel’s new CEO is just beginning to reorganize the business and could take years to show positive results,” explains Stone Fox, who is among the top 2% of TipRanks’ stock pros.
The investor highlights ongoing struggles in Intel’s foundry segment, where operating losses exceed $2 billion per quarter and profitability appears more than a year out. Compounding the issue, Stone Fox points to declining sales expectations – slashed from $67 billion at the start of 2024 to just $50 billion now.
Casting further doubt on Intel’s AI ambitions, Stone Fox notes that the company has conceded it can’t catch up to NVIDIA in AI training chips. Instead, Intel is pivoting toward edge AI, where competition is heating up from players like Qualcomm. For investors hoping AI would be a growth engine, that’s not exactly reassuring.
“Without any solid AI plans, the consensus revenue trends are likely to continue slipping,” Stone Fox warns.
That caution translates into a clear call to action: “Investors should use any strength to continue unloading the stock,” concludes Stone Fox Capital, who maintains a Sell rating on INTC. (To watch Stone Fox Capital’s track record, click here)
Wall Street, meanwhile, is holding its ground – but not exactly with confidence. Of the analysts tracked on TipRanks, 25 rate INTC shares a Hold, compared to just 1 Buy and 4 Sells, for a Hold (i.e., Neutral) consensus rating. The average price target of $22.28 suggests shares will stay range-bound for the foreseeable future. (See INTC stock forecast)
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Disclaimer: The opinions expressed in this article are solely those of the featured investor. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.