INTC: Intel Stock Plunges 9.2% After $12.7B Revenue Slides Below Analysts’ Views

Chip maker made its situation worse when it issued disappointing second-quarter earnings and revenue guidance.

• Intel stock INTC plunged 9.2% Friday after the chip maker posted weak results and even weaker forward-looking guidance. Revenue for the first quarter arrived at $12.7 billion. Despite the fact that it was 9% higher from a year ago, it was just shy of the $12.8 billion expected. Still, adjusted earnings of 18 cents a share topped Wall Street’s consensus calls for 14 cents.
• For the quarter ending June, Intel projects revenue of $12.5 billion to $13.5 billion and 10 cents in adjusted earnings per share. In contrast, analysts had baked in $13.7 billion in revenue and an adjusted profit of 26 cents a share. "We are making steady progress against our priorities and delivered a solid quarter," Intel CEO Pat Gelsinger said in a statement.
• Further, the Intel boss said the company was accelerating “AI solutions” and maintaining “relentless focus on execution.” But investors didn’t buy it. For the second consecutive quarter, Intel issued an outlook that discouraged shareholders. And while AI players such as chip giant Nvidia NVDA and server maker Super Micro Computer SMCI are all the game in town, shares of Intel are down 33% on the year.