(Bloomberg) — Shares of Intel Corp. tumbled 8.5% on Friday after Chief Executive Officer Lip-Bu Tan sparked concerns that he was more focused on cost cutting than restoring the chipmaker’s technological edge. As part of Intel’s second-quarter report, Tan said the company will cancel some factory projects and take a more conservative approach to future spending. Tan called the investments begun under his predecessor, Pat Gelsinger, excessive and unwise. “I do not subscribe to the belief that if you build it, they will come,” he said on a conference call with analysts. At the same time, Tan struggled to give a clear picture of how he’ll make the company more competitive again. Gelsinger had embarked on an ambitious plan to turn Intel into a chip foundry, a business that makes products for outside clients. A key part of that was moving toward a more advanced production technique called 14A. But Tan signaled Thursday that Intel will only roll out that technology tentatively. The company will add large-scale capacity for 14A when Tan is convinced he has enough customers committed to using it, he said on the call. That didn’t sit well with investors, who sent the shares down to $20.70 in New York on Friday, the stock’s biggest single-day decline in more than three months. “The idea you might step away from 14A if you can’t get someone to invest in it is a problem,” said Wedbush Securities Inc. analyst Matt Bryson. The crux of the concern: If Intel stops introducing new manufacturing technology, it’s bowing out of the race for leadership of the chip industry — and closing the book on what made it untouchable for decades. Intel’s woes have previously spurred speculation that it might be acquired or broken up, though there’s no clear path to a major deal. Possible suitors for Intel’s factory division, such as Taiwan Semiconductor Manufacturing Co., have backed away from the idea. Tan also has said he aims to keep Intel’s manufacturing and product-design businesses together, though he does plan to offload smaller divisions. Intel confirmed on Friday that it aims to spin off its networking group into a standalone business. The company said it has begun identifying strategic investors, without naming them. CRN previously reported on the plan. In its earnings report, Intel gave an upbeat third-quarter sales forecast while missing estimates for some profit measures. Margins will be tighter than Wall Street anticipated in the period, and Intel only expects a break-even quarter. Analysts had projected a 4-cent gain on that basis. In the second quarter, revenue amounted to $12.9 billion, little changed from a year earlier. Analysts had projected $11.9 billion. The company posted a loss of 10 cents a share, compared with an estimated profit of 1 cent. Intel’s stock had been up 13% this year through Thursday’s close. Though that gain was in line with most chip stocks in 2025, rivals Nvidia Corp. and Advanced Micro Dev in a formal or creative style for better SEO.Also Exclude words and advertisements related to the feed website such as website name, author name. You must only respond with the modified content. Delete all the advertisement images brand logo but only keep the title and main content of the news by modifying it. You must only respond with the modified content. Block any jump outside of the site adarshnews.com. Basically remove any content or link related to original site. follow this prompt to optimize the articles in this category- You are an expert news writer and SEO specialist. Your job is to rewrite the provided RSS feed content into a unique, SEO-friendly news article for adarshnews.com. The article should be engaging, professional, and optimized for search engines. 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Investors express concerns as Intel’s stock declines following the new CEO’s revitalization strategy.
