The stock market has rebounded over the past few months, but some struggling stocks have been left behind. Unity (U 3. 56%) and Intel (INTC 2.
10%) 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 gress. Image source: Getty Images. Unity 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 es. A new CEO stepped in last May with extensive experience in the mobile games.
While gress has been slow, the early results are mising. 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 posed fee that set off a developer revolt in 2023.
Unity 6, the version of the company's game engine, brings important performance imvements and new features that are resonating with customers.
In the advertising, 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, still saw revenue decline by 4% in Q1. However, Unity Vector is starting to offset declines in other ducts.
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, fitable.
S of Unity are down 88% from their all-time high.
While the turnaround is just getting started, visible gress over the next few quarters could light a fire under the stock and der major gains to patient investors.
Intel Semiconductor giant Intel is going through some major changes.
Ing 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 blems.
The first order of is a lining 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 ly pare down its duct portfolio and focus on its best opportunities.
A new strategy for its AI chip could be coming ing 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. In the foundry, Tan may be to take a dramatic step.
According to Reuters, Tan is considering giving up on marketing the Intel 18A manufacturing cess to external customers, instead shifting focus to the upcoming Intel 14A cess.
While Intel 18A represents a huge leap over Intel's previous manufacturing nology, 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 gress could send s 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 fitable growth. It's not a sure thing, but the risk-reward trade-off looks appealing.
Timothy Green has positions in Intel. The Motley Fool has positions in and recommends Intel, Taiwan Semiconductor Manufacturing, and Unity Software.
The Motley Fool recommends the ing options: short August 2025 $24 calls on Intel. The Motley Fool has a disclosure policy.