Intel Secures a Long-Awaited Victory
New Leadership and Financial Gains
In 2025, Intel began the year with two clear objectives: finding a new leader and securing financial stability. The company succeeded in both areas. In March, it appointed Lip-Bu Tan as its new CEO, and by the third quarter of the year, Tan had delivered on the second goal.
On August 18, Intel received a $2 billion investment from Japan's SoftBank Group. Just a few days later, on August 22, the U.S. government added to the company’s coffers with a $5.7 billion investment. Then, on September 18, Nvidia joined in with a $5 billion investment in Intel. These external investments were just part of the financial boost Intel received.
In addition to outside funding, Intel also took steps to improve its own financial position. In March, the company announced a deal to sell 51% of its Altera business to Silver Lake for $4.3 billion, which was finalized in the third quarter. Later, in July, Mobileye Global conducted a secondary offering that allowed Intel to sell 50 million shares, raising approximately $900 million.
As a result of these moves, Intel ended the third quarter with nearly $31 billion in cash, cash equivalents, and short-term investments, compared to $22 billion at the start of the year. Additionally, the company repaid $4.3 billion in debt during Q3, strengthening its balance sheet significantly.
Expanding the Foundry Business
Intel’s financial success is not just about improving its balance sheet—it’s also about building a stronger foundry business. In its 2024 annual report, the company stated its intention to expand as a third-party foundry for external customers. This strategy is crucial for Intel’s long-term goals.
A semiconductor foundry produces chips for other companies based on their designs. Currently, countries like Taiwan and China dominate this market. However, the U.S. government is interested in supporting domestic foundry capabilities, which is why it invested heavily in Intel. This aligns with broader efforts to strengthen U.S. manufacturing and reduce reliance on foreign suppliers.
About one-third of Intel’s Q3 revenue came from its foundry business, though this segment saw a 2% year-over-year decline. This indicates that Intel still has work to do to attract more external customers. To address this, the company plans to use some of its newly acquired cash to grow its foundry operations.
Increasing Capital Expenditures
In 2024, Intel spent around $17 billion on capital expenditures. For 2025, the company expects these expenses to rise to $27 billion on a full-year basis. While not all of this spending is directed toward the foundry business, the overall increase shows that Intel is investing in its future. These expenditures are aimed at improving its competitive position in the semiconductor industry.
The Next Big Win
So far, Intel has achieved two major victories in 2025: a new CEO and significant financial gains. However, the company still needs a third key win—securing more foundry customers. Some analysts speculate that Apple could be a potential partner. A recent report suggested that Intel approached the iPhone maker looking for an investment, and there are even rumors that this could lead to Apple using Intel’s foundry services.
While this remains speculative, it highlights the potential for Intel to gain traction in the foundry space. With more cash on hand, the company is preparing to ramp up production for external customers. A single major customer win could provide the momentum needed to realize CEO Lip-Bu Tan’s long-term vision for Intel.
Should You Invest in Intel?
Before considering an investment in Intel, it's important to evaluate the current landscape. The Motley Fool Stock Advisor team recently identified what they believe are the 10 best stocks for investors to buy now—and Intel was not among them. The selected stocks have the potential to deliver strong returns in the coming years.
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Investors should closely watch Intel’s progress in securing foundry customers and its ability to leverage its newfound financial strength.
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