Intel beats on Q1 expectations, however poor Q2 forecast sends inventory sliding

Intel’s (INTC) inventory fell over 5% in premarket buying and selling on Friday after its first-quarter earnings beat estimates. Nevertheless, a disappointing outlook brought about shares to drop in after-hours buying and selling on Thursday.

Within the coming quarter, Intel says it expects second quarter income of between $11.2 and $12.4 billion. Wall Avenue was in search of $12.8 billion.

“The present macro atmosphere is creating elevated uncertainty throughout the trade, which is mirrored in our outlook. We’re taking a disciplined and prudent method to help continued funding in our core merchandise and foundry companies whereas maximizing operational price financial savings and capital effectivity,” Intel CFO David Zinsner stated in an announcement.

Shares of Intel fell greater than 6% following the announcement. Shares are off 38% over the previous 12 months.

For the primary quarter, Intel noticed adjusted earnings per share (EPS) of $0.13 on income of $12.7 billion. Analysts had been anticipating adjusted EPS of $0.01 on income of $12.3 billion, in response to Bloomberg consensus estimates.

The corporate noticed $0.18 EPS and $12.7 billion in the identical interval final yr.

Intel additionally reported consumer computing income of $7.6 billion versus expectations of $6.9 billion.

Information heart and AI section income got here in at $4.1 billion versus expectations of $2.9 billion. Intel Foundry income topped out at $4.6 billion. Analysts had been in search of $4.3 billion.

The earnings announcement, the primary since new CEO Lip-Bu Tan took the reins of the ailing chip big final month, comes as Intel girds itself for the potential fallout from President Trump’s commerce warfare with China.

Whereas Intel produces the majority of its chips within the US, it’s nonetheless vulnerable to tariffs on laptops and different programs inbuilt China. And whereas computer systems are at present exempt from tariffs, the Trump administration has signaled that it plans to reintroduce duties on these units when it launches tariffs on semiconductors within the coming weeks and months.

Throughout his first public feedback as CEO at Intel Imaginative and prescient 2025, Tan laid out his plans for the corporate whereas acknowledging the burden of the duty forward of him.

“For fairly a very long time, we fell behind on innovation. Consequently, we’ve been too gradual to adapt and to fulfill your wants. You deserve higher, and we have to enhance. And we’ll,” Tan stated through the occasion.

Wall Avenue is ready for some type of information about how the newly appointed CEO will transfer ahead with Intel’s third-party foundry enterprise. Analysts have referred to as for all the things from getting the corporate out of the chip manufacturing enterprise to backing away from its try to show right into a third-party chipmaker akin to TSMC.