Intel's New CEO Fights to Revive Chip Giant Amid Fierce Rivalry

Intel, the once-dominant semiconductor company, is facing a challenging period as it reports its Q2 2023 earnings this week. Under the leadership of its new CEO, Lip-Bu Tan, the company is working to revive its fortunes amid fierce competition from rivals like AMD and Nvidia.

Intel's market capitalization currently stands at $101 billion, a far cry from AMD's $257 billion and Nvidia's staggering $4 trillion. The company's shares have declined by 29% over the past 12 months, though they are up 16% year-to-date.

For the upcoming Q2 2023 quarter, Intel is expected to report adjusted earnings per share of $0.01 on revenue of $11.8 billion, down from the $0.02 EPS and $12.8 billion in revenue it reported in the same period last year. The company's core Products business, which includes sales of laptop, desktop, and data center chips, is projected to decline by 8% year-over-year.

To bolster its competitiveness, Intel is reportedly considering promoting its next-generation 14A chip technology to customers, potentially leading to a significant write-down on its 18A technology that former CEO Pat Gelsinger had championed. This move could help Intel better compete in the rapidly evolving semiconductor landscape.

Despite the challenges, Intel remains a significant player in the industry, and Tan's efforts to streamline the company and focus on its core strengths could pay dividends in the long run.