Intel has published its financial results for the end of 2025, leaving mixed feelings in the market. While the company managed to sharply reduce its net losses, investors reacted negatively and pushed the stock down by 13%.
Intel cut its losses from a massive 18.8 billion dollars in 2024 to a loss of 300 million dollars in 2025. Even so, the market response shows concern about how the company is recovering and whether that recovery is sustainable in the long term.
Heavy Dependence on External Funding
One of the main reasons behind the stock drop is Intel’s strong reliance on external funding. During the past year, the company received around 20.4 billion dollars from outside sources. This includes strategic investments from companies such as Nvidia and SoftBank, as well as subsidies from the US government.
Without this financial support, Intel’s final balance would have been much worse. The company reported annual revenue of 52.9 billion dollars, its lowest level since 2010. This highlights how difficult it has become for Intel to keep its leading position in a fast-changing and highly competitive market.
Another major challenge for Intel is limited supply. Although demand for chips used in artificial intelligence and data centers remains strong, the company has admitted it cannot fully meet this demand. This supply gap is expected to continue until at least 2026.
To manage the situation, Intel has focused its production on Xeon processors for data centers, at the expense of consumer products like Core processors. Looking ahead, the outlook remains cautious. While the use of advanced manufacturing processes such as EUV is growing and now accounts for 10% of foundry revenue, Intel Foundry is still operating at a loss due to high investment costs.
