After a challenging 2024, marked by another year of declining revenue and substantial net losses for the company, Intel hopes the March 2025 appointment of new CEO Lip-Bu Tan can bring about transformative change for the semiconductor giant. Unsurprisingly, a renewed focus on AI is likely to be a core feature. This includes integration into its core PC market with the growing adoption of
. And, with a revamp of its manufacturing operations, such as attracting external clients to its foundry business, Intel might now be in line for the revival it has long been hoping for.
Beyond being just a PC-centric company
Intel’s largest segment in terms of revenue is the
PC-focused Client Computing division, a business unit that includes central processing units (CPUs) for PCs. In 2024, Client Computing revenue amounted to 30.3 billion U.S. dollars, which, despite appearing to be in a stagnant phase, remains an important business segment for the company. As such, Intel is well-placed to benefit from the rollout of AI PCs, supplying chips capable of supporting AI applications. Beyond PCs, an area of the business that is expected to receive even greater attention is its
data center and AI activity, particularly as the
AI chip market continues to mature.
Ambitions to grow its foundry business
Another sign of Intel’s broadening business is the development of its foundry service. Intel has previously highlighted its plan to become the world's second-largest foundry by 2030. Currently, the
semiconductor foundry market is dominated by TSMC, with Intel looking to overtake Samsung in the foundry rankings. With CEO Lip-Bu Tan appearing committed to continuing down this path, Intel hopes that by opening its chip manufacturing capabilities to external customers, such as to Nvidia and Broadcom, that it can restore its competitive edge in the semiconductor industry.
Intel competes on multiple fronts
Competitors in the computer processor and graphics markets include
AMD and
Nvidia, with this trio of companies having mixed successes in their AI roadmaps. Undoubtedly, Nvidia is the star of the AI boom, although all three companies have indicated that they plan to further enhance their AI offering. Intel also faces competition from the British semiconductor and software design company
Arm Holdings, supplying competing processor technologies.
A pivotal period for the company
Looking ahead, the expansion of AI across its PC and data center end markets is set to be a key strategic aim for Intel. This, along with the continued development of Intel Foundry, may well be the catalyst for a period of growth for the company. And, under the guidance of new CEO Lip-Bu Tan, Intel hopes it can recover from the woes of previous years to reclaim its competitive standing in the semiconductor landscape.
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