Core Viewpoint - Intel is facing significant challenges in its core CPU markets due to market-share losses, missed opportunities in AI, and costly investments in becoming a foundry, yet it remains a potential long-term buy for patient investors [1]. Market Position and Competition - Intel's market dominance has declined, with its desktop CPU market share dropping below 80% and server CPU market share around 75% as of mid-2024, largely due to competition from AMD [4]. - In 2017, Intel held nearly 90% of the desktop CPU market and over 98% of the server CPU market, showcasing its previous stronghold [3]. Financial Performance - Intel's annual revenue has decreased from over $75 billion to approximately $53 billion, with profits disappearing [6]. Strategic Changes - Under new CEO Lip-Bu Tan, Intel plans to reduce costs through layoffs and streamline its organization by eliminating middle management to refocus on engineering [8][9]. - The company aims to adapt its foundry business to attract external customers, which is crucial for recouping its substantial manufacturing investments [9]. Technological Advancements - The completion of the Intel 18A manufacturing process, set for volume production, promises significant performance and efficiency improvements, potentially giving Intel a competitive edge with its upcoming Panther Lake PC chips [10][11]. - The 18A process has already attracted some external customers, but more are needed to validate Intel's manufacturing capabilities [11]. Valuation and Investment Potential - Intel's stock is currently valued at around 0.9 times book value, indicating it is trading below its net asset value, which is at a multidecade low [12]. - Despite the challenges, Intel's low valuation and new leadership focused on necessary changes could lead to market-beating gains if the turnaround shows progress [14].