Intel: A Bit of a Rollercoaster, Honestly

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Right. Intel. It’s been…a year. They’ve nearly doubled their share price, which sounds good, doesn’t it? Like a triumph? Except, and this is the bit that always gets me, they still lost money. Honestly, it’s like going on a diet and simultaneously eating a whole cake. The effort is there, the intention is…present, but the result is just…confusing.

The market, of course, is all about potential. It’s a bit like online dating, really – it’s not about who you are now, it’s about who you could be. Intel’s stock is hinting at a brighter future, which is encouraging. But I’ve started to think it’s probably a good idea to actually look at what went wrong, just so we don’t repeat it. It’s a bit like checking the sell-by date on the milk, isn’t it? Preventative measures.

Intel’s Descent into…Not Exactly Glory

Their peak was 2021, apparently. $79 billion in revenue. Sounds impressive, typed out like that. But even then, there were warning signs. Costs were creeping up, margins were shrinking. It was like watching someone slowly realize they’ve overcommitted to a holiday they can’t afford. And then 2022 happened. The bear market, high inflation…it was a perfect storm of doom. Revenue plunged, profits took a hit. They’d had a good run with PCs during the pandemic, but that bubble burst, and suddenly everyone had too many laptops. Who knew?

2023 was even worse. Nearly 80% haircut on net income. Sales down again. And to add insult to injury, they were losing market share to Nvidia and AMD, who were all over this AI thing. It’s like watching someone else get all the good presents at a party. It just feels…unfair. Units of Market Share Lost: Significant. Hours Spent Scrolling Through Tech News: Excessive. Number of Times I Considered Becoming a Beekeeper: 3.

A Change at the Top (and a Lot of Red Ink)

2024 was…dramatic. Pat Gelsinger, the former CEO, had a bit of a rough time. $15.9 billion in impairment charges. $2.8 billion in restructuring charges. It’s like discovering a hidden leak in the roof just as the monsoon season starts. They tried to cut costs, but it wasn’t enough. The PC and foundry divisions were dragging them down, despite some strength in data centers and AI. And then, the inevitable happened: he was forced to resign. It’s always messy, isn’t it? Like a really bad breakup.

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Lip-Bu Tan stepped in as CEO in March 2025. He’d been a director before, so at least he knew the layout of the building. But even with a new captain at the helm, 2025 wasn’t exactly a triumph. Gross margin improved, spending on R&D and overhead went down…but they still posted a loss. A loss! It’s like running a marathon and finishing in last place. You technically completed it, but…the feeling.

There were some positives, I suppose. Adjusted earnings were positive, operating cash flow was decent. But it’s a bit like finding a ten-pound note in an old coat pocket – a nice surprise, but not exactly a financial windfall.

Still Betting on the CPU (Are They?)

Tan seems to think CPUs still have a role to play in the AI era. Which is…interesting. Nvidia and AMD are all about GPUs, but Intel’s sticking with the old guard. It’s a bit like insisting on using a rotary phone in a smartphone world. Will it work? I honestly have no idea. It feels like a gamble. A potentially very large gamble.

The third article in this series is supposed to look at Intel’s strategic plan. I’m bracing myself. I have a feeling it’s going to involve a lot of jargon and a lot of optimism. And probably a few more losses. Days Spent Analyzing Financial Statements: Too Many. Number of Times I Considered Selling Everything and Opening a Cat Café: 5. Will Become Disciplined Long-Term Investor: Highly Unlikely.

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2026-02-15 20:12