• Former White House economic advisor Kevin Hassett projects a more profitable future for Intel and similar firms, citing strategic and macroeconomic tailwinds.
  • The outlook comes as Intel navigates a fourth consecutive quarterly loss, with a Q2 2025 GAAP EPS loss of $(0.67) on flat revenue of $12.9 billion.
  • CEO Lip-Bu Tan's sweeping corporate overhaul, including the spin-out of Intel Foundry and a push for $17 billion in non-GAAP operating expenses this year, is seen as a critical step toward financial stabilization.

Former White House economic advisor Kevin Hassett recently expressed confidence that companies like Intel Corporation are positioned to become more profitable, a view that offers a forward-looking counterpoint to the chipmaker's current financial struggles. This optimism is rooted in the company's aggressive internal restructuring and a favorable external policy environment, even as it weathers significant quarterly losses.

Intel’s most recent earnings report underscores the challenge. The company posted a GAAP loss of $(0.67) per share for the second quarter of 2025, with revenue holding flat year-over-year at $12.9 billion. This marks the fourth straight quarter of losses, largely attributed to substantial restructuring and impairment charges as new CEO Lip-Bu Tan executes a major operational overhaul. Efforts to reach Intel for additional comment on Hassett's remarks were not immediately successful.

The core of the bullish thesis lies in this very restructuring. Tan’s strategy involves streamlining management, implementing cost controls with a target of $17 billion in non-GAAP operating expenses for 2025, and critically, establishing its foundry business as a separate subsidiary. This pivot to a foundry model, mirroring the approach of rivals like TSMC, is a fundamental shift intended to unlock new revenue streams and capitalize on the U.S. government's push for domestic chip manufacturing via CHIPS Act incentives.

“What you’re seeing is a necessary recalibration,” said one analyst familiar with the matter, who spoke on condition of anonymity. “The losses are painful but they appear to be investments in a more competitive and asset-light structure. Without this deal with itself, the path would be much harder.”

Macroeconomic factors, including ongoing trade tensions and potential tariffs, continue to inject uncertainty into Intel's forecasts, prompting a cautious short-term outlook from management. However, the long-term perspective echoed by observers like Hassett suggests that alignment with industrial policy and successful execution of its new foundry strategy could be the key to reversing its fortunes and achieving sustained profitability by 2026.