Intel shares fall after company provides weak forecast for the current quarter

Intel
reported
first-quarter
earnings
on
Thursday
that
beat
Wall
Street
expectations
for
earnings
per
share,
but
came
up
light
in
sales.
Intel
gave
a
weak
forecast
for
the
current
quarter.

The
stock
fell
8%
in
extended
trading.

Here’s
how
Intel
did
versus
LSEG
consensus
expectations
for
the
quarter
ended
in
March:

• 
  Earnings
  per
  share:
  18
  cents
  adjusted
  vs.
  14
  cents
  expected
• 
  Revenue:
  $12.72
  billion
  vs.
  $12.78
  billion
  expected

For
the
second
quarter,
Intel
expects
earnings
of
10
cents
per
share
on
revenue
of
$13
billion
at
the
midpoint.
That
forecast
compares
to
analysts’
expected
earnings
per
share
of
25
cents
on
$13.57
billion
in
sales.

In
the
first
quarter,
Intel
reported
a
net
loss
of
$400
million,
or
9
cents
per
share,
versus
a
net
loss
of
$2.8
billion,
or
66
cents
per
share,

last
year.

Revenue
was
$12.7
billion
versus
$11.7
billion
a
year
ago,
a
9%
year-over-year
increase.

Intel
CEO
Pat
Gelsinger
told
investors
on
an
earnings
call
to
focus
on
the
company’s
long-term
potential.

“We
are
one
of
two,
maybe
three,
companies
in
the
world
that
can
continue
to
enable
next-generation
chip
technologies,”
he
said.

The
quarterly
earnings
report
was
the
first
since
the
company
revealed
that
it
had
made
its
chip
manufacturing
business,
called
Intel
Foundry,
a
separate
line
item
with
its
own
costs
and
sales.

Intel
Foundry
reported
$4.4
billion
in
revenue
during
the
quarter,
which
was
down
10%
year
over
year,
the
company
said.
The
unit
reported
a
$2.5
billion
operating
loss
during
the
March
quarter.
Intel
said
last
month
that
it
had
reported
a
$7
billion
operating
loss
in
its
foundry

in
2023.

Intel’s
biggest
business
remains
the
chips
it
makes
for
PCs
and
laptops,
which
is
reported
as
Client
Computing
sales.
Those
chip
sales
totaled
$7.5
billion,
up
31%
from
a
year
earlier.

Intel
also
makes
central
processors
for
servers,
as
well
as
other
parts
and
software,
which
are
reported
in
its
Data
Center
and
AI
business.
That
line
saw
sales
rise
5%
to
$3
billion,
even
as
Intel
continues
to
fight
for
server
dollars
against
artificial
intelligence
chips
made
by
companies
like
Nvidia.

Earlier
this
month,
Intel
said
that
it
would
release
a
new
AI
processor
for
servers

called
Gaudi
3,
intended
to
compete
against
Nvidia’s
popular
graphics
processing
units,
although
it
won’t
ship
until
later
this
year.
Intel
said
it
expected
more
than
$500
million
in
sales
from
its
Gaudi
3
chips
in
the
second
half
of
the
year.