Intel

Intel launched a “USAI” section on its website, emphasizing its commitment to American chip manufacturing – claiming to be the only U.S. company manufacturing advanced chips domestically for over 50 years. This follows a meeting between Intel CEO Pat Gelsinger and President Trump, signaling a potential shift in sentiment. Facing global competition and scrutiny, Intel aims to solidify its standing as a vital American asset. Gelsinger addressed concerns about his background and assured the company is on track to advanced U.S. semiconductor manufacturing process.

Former Intel CEO Craig Barrett argues that Intel’s survival is crucial for U.S. chip manufacturing dominance. He believes underinvestment hinders Intel’s ability to compete with TSMC and Samsung. Barrett proposes a $40 billion collective investment from Intel’s major customers like Apple, Google, and NVIDIA to secure domestic chip supply and potential price advantages. He also urges adoption of advanced technologies and tariffs on imported chips to boost demand. Some of his suggestions align with current U.S. policies and Intel’s existing technology investments.

Intel released a statement affirming its commitment to U.S. national and economic security amid reports of calls for CEO Lip-Bu Tan’s resignation. The company highlighted its significant investments in U.S. semiconductor R&D and manufacturing, including a new fab in Arizona. The statement follows alleged pressure from sources close to former President Trump. Tan, Intel’s first CEO of Chinese descent, was appointed in March 2025 and has a strong background in technology and investment. Intel is reportedly engaging with U.S. government officials to address concerns.

Fitch Ratings downgraded Intel’s credit rating to BBB with a negative outlook, citing challenges in maintaining market demand amid intensifying competition. This follows a Q2 earnings report revealing significant losses and restructuring efforts including workforce reductions and project cancellations. While revenue saw a slight uptick, concerns remain over Intel’s financial stability and its ability to improve PC chip shipments and reduce debt. S&P and Moody’s previously downgraded Intel, reflecting broader market pessimism.

AMD is set to release its Q2 earnings, anticipating strong results and potentially record-breaking revenue. The company is projected to generate approximately $32 billion in revenue this year, nearing Intel’s level for the first time. While Intel’s Q2 revenue was $12.9 billion, its profitability declined, leading to reduced full-year guidance. AMD’s stock performance is strong, with market capitalization exceeding $280 billion, while Intel’s remains around $80 billion. AMD’s revenue is now more than half of Intel’s, a significant shift given AMD’s reliance on external foundries.

Intel’s foundry ambitions face disruption as three key manufacturing executives are reportedly retiring: Kaizad Mistry, Ryan Russell, and Gary Patton. Mistry and Russell oversaw process technology development, while Patton focused on design platform solutions for foundry clients. These departures create a knowledge gap in Intel’s manufacturing roadmap, crucial for attracting external customers to Intel Foundry Services (IFS). Intel is also reportedly reviewing its technology development structure, potentially streamlining capacity planning and reducing engineering headcount.

Intel plans to spin off its Network and Edge (NEX) business unit, a division developing network and communication chips with $5.8 billion in revenue in 2024. This strategic realignment signifies a pullback from competing with Nvidia in the communication chip market. NEX, with thousands of employees globally, including 400 in Israel, will become an independent entity focused on silicon solutions for communications, networking, and Ethernet connectivity. The move signals Intel abandoning its pursuit of a vertically integrated offering of AI hardware and software, similar to Nvidia’s model with Mellanox.

Mobileye (MBLY) priced Intel’s secondary offering of 50 million Class A shares at $16.50 each, with underwriters holding a 30-day option for 7.5 million additional shares. The offering, closing July 11, 2025, requires Mobileye’s concurrent repurchase of 6.23 million shares from Intel, approved by its board. Post-closing, Intel intends to convert 50 million Class B shares to Class A to expand the public float but will retain ownership. Mobileye will not sell shares or receive proceeds. Goldman Sachs and BofA lead the underwriting, supported by major banks. The offering is subject to SEC registration and standard closing conditions.

Intel, under CEO Pat Gelsinger, is reportedly shifting its strategy away from in-house glass substrate development towards external sourcing. This move aims to accelerate product innovation and streamline operations by focusing resources on core product lines. The change signifies a more pragmatic approach, prioritizing faster adoption of mature solutions through partnerships over pioneering new technologies independently. This strategic pivot is part of broader reforms to optimize business operations and enhance the company’s competitiveness.

To boost profitability, Intel is implementing a strict project approval process. Intel’s new policy mandates a minimum 50% gross margin for new projects, as stated by CEO Michelle Holthaus. Projects not meeting this threshold will be denied funding and resources. This strategic shift, driven by CEO Pat Gelsinger, is aimed at improving Intel’s margins, which currently stand at 31.67% after declining below 50% in Q2 2022.