Santa Clara’s chip giant Intel Corp. pulled off a first-quarter surprise, topping Wall Street’s expectations with stronger-than-forecasted earnings and revenue. But the victory lap was cut short by a bleak second-quarter outlook that sent investors scrambling for the exits, driving the company’s stock into a tailspin after hours on April 24, 2025.
Intel reported a first-quarter adjusted earnings per share of 13 cents, handily beating analysts’ estimates of a single penny. Revenue clocked in at $12.7 billion, above the $12.3 billion consensus forecast. The client computing group, which includes chips for PCs and laptops, saw an 8% year-over-year revenue drop, but the foundry business—a key focus for Intel’s turnaround—grew 7% from last year. A rush to secure chips amid trade tensions gave sales an unexpected boost, particularly for older chip models used in manufacturing.
The mood shifted fast when Intel laid out its Q2 guidance. The company projected an adjusted loss of 32 cents per share, far worse than the 16-cent loss analysts had braced for. Revenue expectations of $12.5 billion to $13.5 billion also fell short of the $13.6 billion Wall Street had penciled in. The culprit? A slowdown in demand as customers work through stockpiled inventory, signaling a tougher road ahead for chip sales.
Investors didn’t wait to react. Intel’s stock cratered over 5% in after-hours trading, wiping out earlier gains. The slide reflects growing unease about Intel’s ability to navigate a choppy market while pouring billions into its ambitious foundry expansion. The company also trimmed its full-year capital expenditure target, a move that raised eyebrows among analysts tracking its long-term bets.
Intel’s Q1 earnings per share were 13 cents, compared to estimates of 1 cent. Q1 revenue was $12.7 billion, against $12.3 billion expected. Q2 guidance projects a loss of 32 cents per share and revenue of $12.5 billion to $13.5 billion, versus estimates of a 16-cent loss and $13.6 billion. The stock fell 5.3% after hours on April 24, 2025.