Intel’s quarterly revenue has fallen by approximately 33% compared with the same period in 2021, reflecting the impact of Apple’s transition to in-house processors and softening demand for personal computers. In its most recent quarter, the company recorded $52 billion in revenue, down from $78 billion in Q1 2021. This sustained downturn has pressured free cash flow, which has contracted by nearly 40% over the same period.

As part of the U.S. CHIPS Act, Intel has secured $8.9 billion in federal subsidies to support construction of new fabrication plants in Ohio and Arizona. These greenfield sites are expected to add 200,000 wafer starts per month combined by 2028, once fully operational. However, Intel has delayed initial production timelines by six to nine months, shifting key process node launches into late 2025.

Competitors AMD and NVIDIA have steadily chipped away at Intel’s share in both client and data-center markets. AMD’s Ryzen and EPYC processors captured an estimated 25% of the x86 server market last quarter, up from 15% two years ago. In the graphics segment, Intel’s discrete GPU efforts remain nascent and account for less than 5% of total GPU shipments, reinforcing the company’s reliance on legacy CPU lines.

Intel reported a negative operating margin of 3.5% in its latest reporting period, compared with a positive 22% margin in 2021. Elevated R&D spending—up 15% year-over-year—and rising raw-material costs for silicon wafers have squeezed profitability. Management projects operating margins will only return to breakeven in mid-2026, contingent on successful ramp-up of new fabs and improved yields at advanced nodes.