On Thursday, Intel is set to announce its first quarter earnings after the appointment of  Lip-Bu Tan as the company’s CEO. The earnings call comes at a critical time for the semiconductor giant, as it grapples with leadership restructuring and US-China trade tensions after Trump’s Liberation Day Tariffs. 

According to Bloomberg, Intel is expected to report adjusted earnings per share (EPS) of $0.01 on revenues of $12.3 billion. This represents a significant decline from $0.18 EPS and $12.7 billion in revenue during the same period last year. The figures highlight the mounting challenges Intel faces, including declining demand in its core personal computing segment and structural hurdles in regaining its technological edge.

Intel Under Tan Leadership 

Tan, who took charge last month, brings with him a deep background in semiconductors and venture capital. While his appointment has been welcomed as a bold step toward revitalizing Intel, analysts believe any impact from the leadership change will be gradual. Investor confidence remains cautious, with Intel’s stock down more than 43% over the past year and over 2% year-to-date. However, the recent stock surge gave a silver lining to the investors. 

Temporary Surge in Demand 

Compounding these internal challenges is the looming threat of renewed tariffs from the Trump administration. Although Intel manufactures most of its chips in the US, it remains exposed to duties on systems like laptops assembled in China. Analysts suggest a temporary Q1 boost from customers rushing to purchase devices ahead of expected tariff hikes, but warn this could lead to weaker demand in the latter half of 2025.

Bernstein analyst Stacy Rasgon notes that the short-term pull-forward effect may distort Q1 results, masking deeper demand issues. As Intel reports earnings, markets will be watching closely to assess the early effects of Tan’s leadership and the resilience of the company’s turnaround strategy. He wrote in an investor note 

“For Intel we adjust estimates, putting in a bit of client-related upside in the 1H to reflect potential for pull-forward / channel fill in the wake of tariff dynamics, but now followed by a 2H channel flush; we also take our 2025 PC growth assumptions from [low single-digits] to flat [year-over-year],”