Intel’s Strategic Overhaul Gains Momentum

Intel Corporation is staging a determined comeback. Following an extended period of uncertainty, a significant strategic reversal and aggressive cost-cutting measures are reigniting investor optimism. As management dramatically streamlines internal operations, unconfirmed reports of a potential return by a major former customer are providing an additional boost to sentiment.

Market chatter is currently providing notable tailwinds. Unverified reports suggesting Apple might utilize Intel's advanced 18A manufacturing process for future M-series chips starting in 2027 have sparked hopes of a resurgence in Intel's foundry business. While official confirmation is absent, investors have begun to partially price in this scenario. This dynamic also helps explain the gap between the current share price and the more conservative price targets set by many analysts, who continue to emphasize execution risks. The stock recently closed at €35.63, reflecting positive market reception of the company's new direction.

A Reversal in Corporate Strategy

A central pillar of the renewed confidence is management's decision to retain the "Network and Edge" (NEX) business unit. Contrary to earlier market speculation predicting a sale to bolster the balance sheet, the division will remain within Intel. Company leadership justifies this move by citing the necessity for tighter integration between hardware and software. The objective is to create a comprehensive offering for critical growth markets like artificial intelligence and edge computing.

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

Organizational Transformation for Agility

Beyond product strategy, the chipmaker is implementing profound organizational changes. Reports detailing a massive reduction in management layers underscore the seriousness of the situation. The leadership hierarchy has been slashed from a previous high of twelve tiers down to just five or six. This radical cut is not solely aimed at cost reduction; its primary purpose is to accelerate decision-making processes, enabling Intel to compete more effectively against nimbler rivals.

The path forward now hinges on whether these leaner structures can deliver the promised acceleration in product development. Investors are focusing on upcoming quarterly results, which must provide the first concrete evidence that this operational turnaround is yielding tangible financial benefits.