Intel’s stock price dropped 5% in premarket trading after the chipmaker delivered stronger-than-expected Q1 earnings but offered a cautious outlook for the second quarter. The company’s adjusted earnings and revenue beat analyst estimates, but its Q2 revenue forecast fell short of expectations.
Key factors contributing to the uncertainty include macroeconomic headwinds, supply chain challenges, and global trade tensions. Intel trimmed its full-year 2025 operating expense target to $17 billion and reduced capital expenditures to $18 billion in an effort to counter these pressures.
Despite near-term belt tightening, Intel remains committed to long-term investments in manufacturing and AI infrastructure. The company cited persistent challenges as the main reasons for its cautious guidance, with softening demand in some data center and PC markets continuing to impact visibility.
Intel’s Q1 earnings performance was a positive surprise, but the company’s Q2 outlook is more subdued due to these ongoing challenges.
Source: https://finance.yahoo.com/news/intel-shares-plunge-weak-outlook-122724743.html