- Intel’s (INTC) shares fell over 5% to $20.39 in after-hours trading after forecasting second-quarter revenue of $11.2 billion to $12.4 billion, below Wall Street’s $12.8 billion expectation, despite beating Q1 estimates.
- First-quarter adjusted EPS was $0.13 on $12.7 billion in revenue, surpassing forecasts of $0.01 EPS and $12.3 billion, with client computing ($7.6 billion), data center/AI ($4.1 billion), and foundry ($4.6 billion) exceeding expectations.
- CFO David Zinsner cited macroeconomic uncertainty and looming U.S. tariffs on Chinese-assembled systems as factors in the cautious outlook, as Intel, under new CEO Lip-Bu Tan, balances investment and cost efficiency.
Intel Corp.’s (INTC) shares dropped over 5% to $20.39 in after-hours trading on Thursday, as a lackluster second-quarter revenue forecast overshadowed a strong first-quarter earnings beat, reflecting caution amid macroeconomic and trade uncertainties. The chipmaker reported first-quarter adjusted earnings per share of $0.13 on revenue of $12.7 billion, surpassing analyst expectations of $0.01 per share and $12.3 billion, though revenue matched last year’s $12.7 billion while earnings fell from $0.18 per share. Intel’s client computing segment delivered $7.6 billion, exceeding the $6.9 billion forecast, while data center and AI revenue reached $4.1 billion, well above the $2.9 billion expected, and Intel Foundry revenue hit $4.6 billion, topping the $4.3 billion projection. Despite these gains, the company’s guidance for second-quarter revenue, ranging from $11.2 billion to $12.4 billion, fell short of Wall Street’s $12.8 billion estimate, triggering the stock decline.
CFO David Zinsner attributed the conservative outlook to heightened industry uncertainty, emphasizing a disciplined approach to balance investments in core products and foundry operations with cost savings and capital efficiency. This earnings report, the first under new CEO Lip-Bu Tan, who assumed leadership last month, arrives as Intel navigates challenges from President Trump’s escalating trade war with China. Although Intel manufactures most of its chips domestically, it remains vulnerable to tariffs on laptops and systems assembled in China, with the Trump administration signaling plans to impose duties on computers alongside forthcoming semiconductor tariffs. The company’s strong performance in AI and data center segments highlights its strategic pivot toward high-growth areas, yet the tariff threat looms large, potentially disrupting supply chains and raising costs. Intel’s ability to exceed expectations in key segments underscores its technological resilience, but the cautious guidance reflects broader concerns about global trade disruptions and softening demand. As the chip giant adapts to new leadership and a volatile trade environment, its focus on operational efficiency will be critical to sustaining momentum in a competitive semiconductor market.
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