Intel’s stock price dropped by more than 8% on Friday after the company shared disappointing predictions for its future earnings. The new CEO, Lip-Bu Tan, had promised to turn things around, but investors were not convinced. For years, Intel has been struggling to keep up in the fast-growing artificial intelligence (AI) industry. At the same time, the ongoing trade war between the U.S. and China has made buyers hesitant, raising doubts about the demand for Intel’s computer chips.

During a recent meeting, Tan explained his strategy to bring back Intel’s success. He wants to focus on improving the company’s engineering, cutting unnecessary work, and reducing the number of employees. However, experts say that changing the direction of a giant company like Intel is not easy. It’s like trying to turn a massive ship—it takes time. Analysts also pointed out that Tan did not share enough details about how he plans to make Intel a leader in chip manufacturing again or how he will attract more customers to its chip-making business.

Tan has been working on strengthening Intel’s contract manufacturing division and recently met with the CEO of TSMC, a major competitor, to discuss possible partnerships. Meanwhile, Intel’s sales in the first quarter got a small boost because customers were buying extra chips in advance. With tensions rising between the U.S. and China, many buyers are worried about future price increases due to tariffs. Some experts believe Intel might benefit if China decides to ease restrictions on U.S. imports, especially since Intel has a strong presence in China.

Doubts About Intel’s AI Strategy

One of the biggest concerns for Intel is its position in the AI industry. While Tan talked about improving Intel’s current products to fit AI trends, many are unsure how the company plans to compete with Nvidia, the current leader in AI chips. Analysts say Intel needs to move quickly and invest heavily to catch up in this fast-moving market.

In the past, Intel tried to grow its AI business by buying smaller companies. However, most of these deals did not help much, except for Mobileye, a self-driving car technology company that Intel later separated from its main business. Experts believe Intel’s biggest mistake was not developing its own AI technology early on. Instead, it relied on acquisitions, which did not give it a strong advantage. Now, Intel faces a tough challenge because it lacks the advanced graphics processing units (GPUs) that are crucial for AI work, putting it far behind competitors like Nvidia.

The road ahead for Intel is difficult, but the new CEO is determined to bring back the company’s reputation as an innovator. Whether his plans will work or not remains uncertain, but one thing is clear—Intel has a lot of catching up to do in the world of technology. Investors and customers will be watching closely to see if the company can make a strong comeback or if it will continue to fall behind in the race for the future of computing.

Employee and Investor Confidence Remains Shaky

While Intel’s leadership is pushing for a turnaround, many employees and investors are still unsure about the company’s future. Workers worry that more job cuts could be coming, especially as the company tries to cut costs. At the same time, investors are waiting to see real progress before they regain trust in Intel’s stock. Some experts believe that if the company can show steady improvements over the next year, confidence might slowly return. However, if Intel continues to fall short of expectations, it could face even bigger challenges in keeping both its workforce and shareholders happy.

The Long Road to Recovery

Rebuilding Intel’s position as a top chipmaker will not happen overnight. The company must not only fix its current problems but also innovate faster than rivals like Nvidia, AMD, and TSMC. Success will depend on whether Intel can create cutting-edge technology that the market truly needs, especially in AI and advanced manufacturing. If Tan’s plans work, Intel could once again become a leader in the tech world. But if the company keeps struggling, it may lose its place as one of the most important names in computing. The next few years will be critical in deciding Intel’s future.