Will INTC's 2025 revenue exceed expectations?

**Intel's 2025 revenue is likely to be in line with expectations**, considering the company's recent performance and strategic adjustments. Here's a detailed analysis: 1. **Q1 2025 Performance**: Intel reported a revenue of $12.7 billion for Q1 2025, which was flat year-over-year but exceeded January guidance by $0.5 billion. This indicates a positive start to the year, with revenue surpassing expectations. 2. **Segmental Analysis**: Within Intel's segments, the Data Center and AI (DCAI) showed strength, with an eight percent increase in revenue. Intel Foundry also saw a seven percent increase in revenue. These growths, although above expectations, are attributed to specific demand factors rather than a general market acceptance. 3. **Strategic Adjustments**: Intel is undergoing significant transformation, including a simplification of its organizational structure and a focus on innovation and efficiency. These changes are expected to positively impact financial performance in the long term. 4. **Q2 Outlook**: While Q2 is typically expected to show flat sequential growth, Intel is cautious due to uncertain economic conditions and potential regulatory risks. The company's forecast for Q2 revenue is between $11.2 billion and $12.4 billion, which is below the previous quarter's revenue. This suggests a potential decline in revenue compared to the strong Q1 performance. 5. **Capital Expenditure and Cost Management**: Intel has reduced its capex target for 2025 to $18 billion, down from $20 billion. This reduction, along with lower operating expenses, reflects Intel's focus on cost management and deleveraging. In conclusion, while Intel's Q1 performance exceeded expectations, the Q2 outlook and strategic adjustments suggest that meeting revenue expectations for the full year may hinge on how well the company navigates the uncertain market conditions and executes its transformation plans.