The stock market has rebounded over the past few months, but some struggling stocks have been left behind. Unity (U 0.04%) and Intel (INTC 0.07%) are facing serious challenges, and it will take time for their turnarounds to gain traction. In both cases, new CEOs are making big changes with the potential to get the companies back on track. While Unity and Intel are risky stocks, they could soar on any positive progress.
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Unity
Video game engine developer Unity went through a major restructuring last year. A company reset led to significant layoffs and the exit from multiple non-core businesses. A new CEO stepped in last May with extensive experience in the mobile games business. While progress has been slow, the early results are promising.
While Unity's overall revenue still declined in the first quarter of 2025, the situation looks better under the surface. Subscription revenue increased, the result of price increases and the company fully scrapping a proposed fee that set off a developer revolt in 2023. Unity 6, the latest version of the company's game engine, brings important performance improvements and new features that are resonating with customers.
NYSE: U
Key Data Points
In the advertising business, the launch of the new artificial intelligence (AI)-powered Vector ad platform sets the stage for recovery. The Grow Solutions segment, which houses Unity's advertising business, still saw revenue decline by 4% in Q1. However, Unity Vector is starting to offset declines in other products.
Unity is one of two major commercial game engines that dominate the market, along with Epic Games' Unreal Engine. This dominant position is Unity's most valuable asset, and the game engine is used heavily across the gaming industry. The challenge now is to turn that dominance into a growing, profitable business.
Shares of Unity are down 88% from their all-time high. While the turnaround is just getting started, visible progress over the next few quarters could light a fire under the stock and deliver major gains to patient investors.
Intel
Semiconductor giant Intel is going through some major changes. Following a turnaround effort led by former CEO Pat Gelsinger that ultimately led to his ouster, the company has brought on industry veteran Lip-Bu Tan to fix its problems. The first order of business is a streamlining of operations that will involve substantial layoffs. Rumors suggest that even workers in the foundry, one of Intel's key growth initiatives, won't be immune. Intel is also planning to outsource marketing to a consulting company, which will use AI to slash marketing costs.
Beyond cost cutting, Intel will likely pare down its product portfolio and focus on its best opportunities. A new strategy for its AI chip business could be coming following the scrapping of its previously planned Falcon Shores GPU. The company has already sold off a majority stake in Altera, and more exits could be coming.
NASDAQ: INTC
Key Data Points
In the foundry business, Tan may be about to take a dramatic step. According to Reuters, Tan is considering giving up on marketing the Intel 18A manufacturing process to external customers, instead shifting focus to the upcoming Intel 14A process. While Intel 18A represents a huge leap over Intel's previous manufacturing technology, it only closes the gap with TSMC, and the company has struggled to win over big customers.
Long story short, Intel's comeback is going to be a drawn-out affair. However, the stock is priced so pessimistically today that any meaningful progress could send shares soaring. Intel is currently valued right around book value, or assets minus liabilities, a historically low valuation for the storied semiconductor company. If Tan can tell a good story and convince investors that a turnaround is viable, a major recovery for the stock could be in the cards.
Intel investors will need to be patient as the company attempts to fix its past mistakes and return to profitable growth. It's not a sure thing, but the risk-reward trade-off looks appealing.
