Intel Plunges 5.72% on Weak Earnings Forecast

On April 25, 2025, Intel's stock experienced a significant drop of 5.72% in pre-market trading, reflecting investor concerns and market sentiment.

Intel's recent earnings report and forecast have been a focal point for investors. The company's second-quarter revenue and profit projections fell below Wall Street estimates, casting a shadow over the new CEO Lip-Bu Tan's first round of earnings. This weak forecast comes amidst ongoing trade tensions, which have added to the uncertainty surrounding the company's future performance.

Despite the dour outlook for the June quarter, Intel managed to exceed first-quarter sales estimates. However, the company's core businesses, particularly in data center and foundry operations, are expected to face challenges. Gross margin is projected to decline to 36.5%, further adding to investor concerns about the company's financial health.

Intel's stock has been volatile in recent trading sessions, with significant drops in extended trading following the release of the quarterly outlook. The company's warnings about a 'choppy' outlook due to tariff worries and other economic uncertainties have contributed to the market's pessimistic sentiment.