Intel Leadership Shakes Up AI Strategy Amid Executive Departure

Intel finds itself at a critical crossroads as significant internal changes unfold against a backdrop of intense market pressure. The chipmaker's shares recently plummeted before staging a recovery above the $36 threshold, leaving investors questioning whether this represents a genuine rebound or merely temporary relief. The uncertainty deepened when Intel's Chief Technology and AI Officer, Sachin Katti, announced his departure to join OpenAI—a move that prompted CEO Lip-Bu Tan to assume direct leadership of the company's artificial intelligence and technology divisions.

The timing of Katti's exit presents substantial challenges for Intel as the company strives to remain competitive in the intensifying artificial intelligence race against rivals Nvidia and AMD. In a decisive response, CEO Lip-Bu Tan has taken personal command of both AI and technology operations, consolidating leadership at the highest level. This concentration of authority aims to demonstrate resolve in addressing strategic priorities, though it also highlights the urgency of Intel's situation in the rapidly evolving AI landscape where the company cannot afford further setbacks.

Should investors sell immediately? Or is it worth buying Intel?

Competitive Pressures Mount as AMD Gains Ground

Fresh data from Mercury Research reveals the growing competitive threat facing Intel. During the third quarter of 2025, AMD successfully captured additional market share in crucial segments. The rival chipmaker now commands 33.6% of the desktop processor market and has expanded its presence in the lucrative server segment to 27.8%. These gains reflect AMD's strengthening position among major customers and its increased processor shipments, placing additional strain on Intel's profit margins and narrowing the window for a meaningful market recovery.

Workforce Reductions Continue Amid Strategic Shifts

Simultaneously, Intel persists with its aggressive cost-cutting initiative, resulting in significant workforce reductions. The company recently eliminated 669 positions in Washington County alone, bringing the total job cuts in Oregon to over 3,000 since the beginning of the year. This restructuring effort aims to create a leaner, more efficient organization capable of responding more rapidly to market dynamics. However, this approach presents a complex balancing act—while financial stabilization remains imperative, the company simultaneously requires top talent and innovative capacity to advance its AI capabilities and next-generation chip designs. The central question remains whether these austerity measures will ultimately strengthen Intel's competitive position or undermine its long-term prospects.