Intel Corp (NASDAQ:INTC, ETR:INL) shares fell 6.4% in extended trading on Thursday after the chipmaker issued a weaker-than-expected revenue forecast for the second quarter, offsetting a slight beat on first-quarter revenue.
The company reported first-quarter revenue of $12.67 billion, narrowly topping Wall Street estimates of $12.31 billion. However, adjusted earnings per share came in at $0.13, missing analysts’ average estimate of $0.74, according to LSEG data.
Intel projected second-quarter revenue in the range of $11.2 billion to $12.4 billion, below analysts’ expectations for $12.8 billion. It also forecast breakeven non-GAAP earnings per share, compared with estimates of $0.38.
“The first quarter was a step in the right direction, but there are no quick fixes as we work to get back on a path to gaining market share and driving sustainable growth,” CEO Lip-Bu Tan said in a statement.
The disappointing guidance comes as Intel continues to navigate a challenging landscape marked by fierce competition in AI chips and ongoing restructuring. The company highlighted progress on its xPU roadmap, including plans to launch the Intel Core Ultra 200 and Xeon 6 series processors later this year.
The company said it would reduce 2025 operating expenses to $17 billion, with a further cut to $16 billion planned for 2026. Intel also trimmed its 2025 capital expenditure budget to save $2 billion.