Dell and Workday could eclipse Intel's fading market cap in the near future. That could also make it an attractive alternative to Super Micro Computer, Dell's smaller rival in the server space, which carved out its own niche with its liquid-cooled AI servers. Dell has a market cap of $79.7 billion. However, from fiscal 2025 to fiscal 2028, analysts expect its revenue and earnings per share (EPS) to grow at a CAGR of 6% and 15%, respectively. Those are impressive growth rates for a stock that trades at 15 ti ...

Core Insights - Intel's first-quarter earnings report showed flat revenue year over year at $12.7 billion, exceeding analysts' estimates by $390 million, but adjusted EPS fell 28% to $0.13, despite beating consensus forecasts by $0.13 [1][2] - For the second quarter, Intel expects revenue to decline between 3% to 13% year over year, with an adjusted EPS of zero, missing the consensus forecast of $0.07 [2][4] - Intel's market share in the x86 CPU market has significantly declined from 82.5% in Q3 2016 to 58.2% in Q2 2025, while AMD's share increased from 17.5% to 40.3% during the same period [4][5] Company Performance - Intel's annual revenue decreased from $55.87 billion in 2014 to $54.23 billion in 2024, while its stock price fell 34% over the past decade, contrasting with the S&P 500's 160% increase [7] - AMD's stock surged 3,950% during the same period, driven by strategic leadership and engineering improvements [7] Strategic Direction - New CEO Lip-Bu Tan plans to enhance engineering capabilities, develop CPUs with integrated AI features, and expand the foundry business, dismissing rumors of selling its foundries or becoming a fabless chipmaker [8][9] - Intel aims to streamline operations and divest noncore assets, including the programmable chipmaker Altera, while ramping up its 18A process node for the Panther Lake CPU launch in late 2025 [9][10] Challenges Ahead - Intel's near-term outlook remains bleak, with expectations that new chips will not significantly boost revenue or profits [10] - The company plans to lay off around 20% of its staff to cut costs and is outsourcing some production to TSMC, raising concerns about its ability to recover [10][11] - Intel faces additional challenges from tariffs, export curbs, and competition from TSMC, complicating its recovery efforts against AMD [12] Competitive Landscape - Intel's losses in mobile, discrete GPU, and core CPU markets highlight deep-rooted issues, contrasting with AMD's consistent leadership under a single CEO [13] - Despite potential optimism from contrarian investors regarding Tan's leadership, there are currently no signs of recovery for Intel against AMD in the x86 CPU market [14]