The technology industry has witnessed a constant evolution over the decades, and in this context, Intel has remained central since its founding in the 1960s. However, the year 2025 presents itself as a critical period for the company, marked by fierce competition and a series of internal and external challenges. This article addresses the current situation of Intel, its legacy, and the challenges it faces in the context of the "Chip War."
Intel: A Legacy of Innovation Facing Turbulent Times
Intel, known since its inception as the undisputed leader in the processor field, has been synonymous with innovation. Its first processor, launched in 1971, and the historical choice of the Intel 8088 by IBM for its PCs cemented its dominance in the market throughout the 1980s, 1990s, and 2000s. Moore's Law, formulated by one of its co-founders, Gordon Moore, predicted that the number of transistors on a chip would double every two years, ensuring a constant advancement in the quality and performance of products.
However, the situation has changed dramatically. Many observers claim that Intel has fallen short in its commitment to innovation while other competitors have rapidly advanced. In 2025, the company faces a series of obstacles, including a massive layoff of 24,000 employees (equivalent to 15% of its workforce) and the most severe stock market drop in its history, which occurred the previous year. Instability in its leadership, marked by CEO changes and public controversies such as the dispute with former President Donald Trump, has further accentuated the uncertainty surrounding its future.
In contrast to the past, where the choice of processors was straightforward, the industry now features strong competitors like AMD, Apple, and Qualcomm. AMD, which began its journey as a manufacturer of Intel clones, has established itself as a strong adversary, leading the market in gaming and integrated graphics with its APUs used in consoles like PlayStation and Xbox. Apple, with its innovative line of Apple Silicon chips, has surpassed both Intel and AMD in power consumption in laptops, offering similar performance with superior efficiency. Qualcomm, on the other hand, has launched the Snapdragon X series designed for Windows laptops, though its performance has been variable.
Despite these challenges, Intel still leads in sales, controlling 65.5% of the market in the first quarter of 2025, a percentage that significantly surpasses AMD (20.6%), Apple (10.4%), and Qualcomm (2 to 3%).
Understanding Processors: Key Concepts
Before detailing Intel’s current offerings, it is essential to review some key concepts that define a processor:
- Power Consumption (Watts): Indicates the amount of energy used by a processor. Generally, higher consumption means more power, but it also impacts battery life in laptops and heat generation. For example, a 15W processor is intended for small, limited systems, while a 250W one is typical of towers requiring significant cooling. Additionally, actual consumption can vary significantly, and it's advisable to assess it through technical reviews.
- Technology: Related to the design and fabrication of chips.
- Microarchitecture: The evolving design of circuits, although improvements have been less drastic in recent years.
- Photolithography Process: Defines the size of circuits and the number of transistors on a chip. A more advanced node leads to greater energy efficiency, but improvements in this area have stagnated.
- Number of Cores: Since the 2000s, processors have begun to incorporate more cores to enhance performance. A modern processor typically has about eight cores, adequate for diverse tasks, including gaming.
- Frequency (GHz): Higher frequency means faster calculations, although it also results in higher consumption. The performance difference between models in the same range is not as significant as it used to be.
The evaluation of a chip's performance is conducted through load tests that simulate the various tasks it may be assigned.
Intel in 2025: The Ultra 200 Series and Its Challenges
Intel introduced its Ultra 200 series for towers and laptops, divided into Ultra 5, Ultra 7, and Ultra 9, which differ in the number of cores and frequency.
- Ultra 9: Eight powerful cores and sixteen low-power cores.
- Ultra 7: Eight powerful cores and twelve low-power cores.
- Ultra 5: Six powerful cores and up to eight efficient cores.
The performance difference between the Ultra 9 and Ultra 7 is minimal for gaming, with only a 4% improvement, even though the former can cost nearly double. However, there is a notable improvement in specific tasks like rendering in CineBench, where the Ultra 9 can deliver 18% more performance. This scenario reveals that a higher number of cores does not always indicate better performance in all applications.
In terms of quality, Intel's 200 series currently does not lead in any category, be it gaming, quality/price ratio, multitasking, or efficiency, and could only be recommended to brand-loyal enthusiasts.
Intel processors may include letters that indicate particular features:
- F: No integrated graphics, ideal for those using a dedicated graphics card.
- K: Suitable for overclocking, although this feature has lost relevance today.
- T: Low-power models, common in pre-built PCs.
The 14 series of processors, for example, the i9 14900K, still remains on the market and is competitive in gaming, even though it consumes considerably more. Previous generations faced stability and degradation issues, which have adversely affected the company's reputation, although solutions have been implemented with BIOS updates.
In the realm of laptops, the 200 series is even more varied, with different nomenclatures:
- HX (High Performance Extreme): Designed for bulk laptops that require high energy demands.
- H (High Performance): For gaming laptops that balance performance and battery life.
- U (Ultra-efficient): Aimed at ultrathin laptops focusing on energy efficiency.
It is crucial to note that the same model may exhibit different specifications between desktop and laptop versions, which can be confusing. Additionally, Intel has begun reselling previous generations, often due to stock shortages in new series.
Overall, starting in 2025, laptops with AMD processors tend to offer superior performance and longer battery life compared to those with Intel chips. If opting for Intel-powered devices, it is advisable to choose the most current generation, as the 12 and 13 generations are practically equivalent to the 14, with certain improvements in energy efficiency.
Lunar Lake: Intel's Bet on Efficiency
Within the 200 series, the line of processors ending in "V" (from 226 to 288) stands out as Lunar Lake, an initiative by Intel to compete with Qualcomm, AMD, and Apple. These chips are designed for ultrathin laptops, focusing on energy efficiency and offering a very capable integrated graphics solution.
The graphical performance of Lunar Lake has surpassed AMD’s Z1 Extreme in various tests. However, the problem of Intel drivers persists, limiting the impact of these processors in the gaming realm.
A notable aspect of this new generation is that they have not been manufactured by Intel but by TSMC, a choice that involves the use of advanced manufacturing technologies while reflecting the difficulties the company faces currently.
Strategic Failures That Led Intel to This Situation
Intel's decline as the undisputed leader in the industry has been the result of several strategic errors:
- Stability: The 13th and 14th generations presented serious stability issues, damaging trust among more demanding users.
- Graphics: The Intel Arc line has failed to gain market presence, with less than 1% market share.
- Artificial Intelligence: Intel has not managed to position itself in the AI realm, dominated by Nvidia.
- Server Market: Intel has lost ground to AMD, which offers better performance and price targets.
- Own Factories: Intel's facilities have not kept pace with those of its competitors, leading to technological stagnation.
- Loss of Key Allies: Apple has begun manufacturing its own chips, changing competitive dynamics.
- Internal Instability: The company has faced internal difficulties, reflected in leadership changes and unmet promises.
Although Intel presents the NPU (Neural Processing Unit) as its main innovation for "AI PCs," the reception has been lukewarm.
Conclusion: An Uncertain Future, Yet Lessons Learned
Despite the challenges, Intel continues to be the sales leader, controlling 65.5% of the market in the first quarter of 2025. Although its processors are not inherently deficient, performance compared to previous generations, particularly the 14 series, raises questions.
The reality is that in almost all aspects, there are more robust alternatives available in the market starting in 2025. Brands may begin to opt less for Intel, although there is still a presence in high-performance products due to previous relationships. The "Chip War" in 2025 represents an exciting yet complicated scenario, where Intel, the former king, strives to redefine its place in an increasingly turbulent market.
An invitation to read more on this blog to stay informed about the latest trends and analyses in the technology field.
