On Friday, Intel Corp (NASDAQ:INTC) CEO Lip-Bu Tan said 2025 marked a pivotal turning point for the chipmaker as major AI funding deals and a sharp stock rally helped reshape the company amid political scrutiny.
Tan Touts Cultural Reset And Renewed Focus At Intel
Tan took to X and described 2025 as a "defining year" for the company, pointing to internal changes, renewed execution discipline and growing confidence from customers and partners.In a year-end message, Intel’s CEO said he was "deeply humbled" to have taken on the role just nine months earlier during a critical period for the iconic U.S. chipmaker.
He credited Intel employees worldwide for uniting behind what he described as the foundation of a "New Intel."
Nvidia, SoftBank Deals Power AI Strategy
Tan's leadership has been closely tied to Intel's renewed push into artificial intelligence.Hired in March 2025 for his venture capital background and deep industry relationships, Tan helped secure major funding commitments, including $5 billion from Nvidia Corp. (NASDAQ:NVDA) and $2 billion from SoftBank Group (OTC:SFTBF) (OTC:SFTBY).
The investments bolstered Intel's balance sheet and strengthened its position as it seeks to regain competitiveness in AI chips and advanced manufacturing.
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Political Scrutiny And Conflict Concerns
Despite those wins, Tan's tenure has not been without controversy. Earlier this year, reports surfaced that venture firms linked to Tan had stakes in hundreds of Chinese companies, including some with potential military ties.The disclosures prompted President Donald Trump to publicly call for Tan's resignation, labeling him "highly conflicted."
The White House later said Tan addressed those concerns during a meeting with Trump in the Oval Office, clearing the way for continued cooperation on U.S. economic and national security priorities.
The administration has also restructured earlier CHIPS Act funding into a $5.7 billion equity investment, securing a 10% ownership stake in the chipmaker.
The rare arrangement is aimed at stopping a possible breakup of Intel's heavily loss-making foundry division.
Under the terms, the government also received a five-year warrant to buy an additional 5% stake at $20 per share if Intel's ownership of the foundry business falls below 51%.
Last month, Intel also got embroiled in a controversy.
Taiwan Semiconductor Manufacturing Company Ltd sued former executive Wei-Jen Lo, now at Intel, alleging he breached non-compete and non-disclosure agreements by potentially leaking sensitive AI chip trade secrets.
Lo joined Intel in October after 21 years at TSMC.
TSMC has alleged that the former executive sought confidential information on advanced chip technologies to benefit Intel, prompting Taiwanese authorities to launch an investigation into potential trade secret violations.
However, Intel denied any wrongdoing.
Stock Surges As Investors Bet On Turnaround
Intel reported third-quarter revenue of $13.65 billion, topping Wall Street expectations of $13.14 billion. The company also reported adjusted earnings of 23 cents per share, well above analyst forecasts of 1 cent per share, according to Benzinga Pro.Overall revenue rose 3% year over year during the quarter.
Intel shares are up about 79.03% year-to-date, reflecting renewed investor confidence. Benzinga Edge Stock Rankings show a strong outlook for Intel over the medium and long term, though short-term performance remains negative.
Intel gets $2 billion lifeline in the form of SoftBank equity investment
(Reuters) -Intel is getting a $2 billion capital injection from SoftBank Group in a major vote of confidence for the troubled U.S. chipmaker in the middle of a turnaround. The equity investment, announced by the companies on Monday, is a lifeline for the once-iconic U.S. firm which has...
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