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Intel is mounting a comeback under CEO Lip-Bu Tan after years of declining sales, manufacturing delays and financial losses that left the once-dominant chipmaker struggling to keep pace with rivals in the AI era, The New York Times reports.
Since Tan took over in March 2025, the company’s market value has more than tripled to about $650 billion as booming demand for artificial intelligence chips has revived its business and renewed investor confidence.
Intel has also benefited from strong backing by the U.S. government, which acquired a 10% stake in the company as part of a broader effort to rebuild domestic semiconductor manufacturing and reduce reliance on Taiwan. That support has helped Intel secure major partnerships with Nvidia, Google, Apple and Elon Musk’s Terafab venture, though several of those agreements depend on the successful rollout of Intel’s next-generation 14A manufacturing process.
At the same time, Tan has aggressively reduced costs by cutting the workforce from nearly 109,000 employees to about 78,500 while focusing the company on its core chip design and manufacturing businesses.
Intel’s data center and AI division has returned to growth, with quarterly sales rising 22%, but the company remains unprofitable, reporting a $3.7 billion quarterly loss while continuing to lose server chip market share to AMD and Arm-based competitors.
Intel has also trimmed spending on long-term research as it prioritizes execution and profitability. While analysts say the company is finally regaining momentum, Tan has cautioned that a full turnaround will take at least five years and will depend on sustained AI demand and Intel’s ability to deliver on its ambitious manufacturing road map.
