Intel’s new CEO, Lip-Bu Tan, stepped in with high hopes back in March 2025 to lead the company through its much-needed turnaround. Despite initial optimism, the reception has been lukewarm, and analysts are divided on the company’s recovery. In a recent analysis, Loop Capital’s Gary Mobley expressed doubts about Intel’s strategy, offering a ‘Hold’ rating and a target price of $25 for its shares. Mobley pointed out a significant challenge that Intel faces: the company’s reliance on TSMC’s advanced-node manufacturing to stay competitive with rivals like AMD, NVIDIA, and ARM. While partnering with TSMC could boost Intel’s competitiveness, it also creates a dilemma. Intel’s high fixed costs make it difficult to proceed without volume orders from its own products division. 
Mobley suggests that if Intel could detach its foundry division from the rest of the company, it might improve the situation and lead to a more optimistic outlook.
Further complicating Intel’s situation, Wells Fargo has also weighed in, stating that it’s too early to fully back a turnaround. While the bank sees potential in Intel’s upcoming updates, particularly regarding its 18A process and yield improvements, there are still concerns. The launch of Intel’s 18A-based Diamond Rapids Xeon CPUs is uncertain, and the expected volume ramp of the Panther Lake CPUs might only happen in mid-2026. On top of that, AMD continues to gain market share, further pressuring Intel in the client computing sector.
Despite these challenges, there is some positive news for Intel. KeyBanc reported that Intel’s 18A process has seen a 5% improvement in yields, now surpassing Samsung’s SF2 process and approaching parity with TSMC’s 2nm process. Intel’s shares have shown a slight uptick, with the company gearing up for its second-quarter earnings call later this week.