Intel Drops 5.35% on Trade Tensions, Weak Forecast

Generated by AI AgentAinvest Movers Radar
Friday, Apr 25, 2025 4:03 am ET1min read

Intel's stock price dropped by 5.35% in pre-market trading on April 25, 2025, amid a backdrop of trade tensions and a weak revenue forecast.

Intel's revenue forecast for the second quarter fell short of Wall Street estimates, primarily due to trade war concerns. The uncertainty surrounding tariff policies led customers to stockpile chips in the first quarter, which is expected to impact the current quarter's revenue. Newly installed CEO Lip-Bu Tan cautioned that it would take time for the company to regain market share and drive sustainable growth.

The trade tensions between the U.S. and China have unexpectedly boosted demand for Intel's older chips, as the Sino-U.S. trade war threatens the company's revenue from its largest market. This has become a driver of demand for Intel's chips, despite the overall challenging environment.

Intel's stock has been volatile, with significant gains and losses in recent trading sessions. The company's strategic direction and its inability to make inroads into the booming AI chip market have been major concerns for investors. Despite these challenges, Intel's stock has outperformed the S&P 500 since the start of the year, reflecting hopes for a turnaround under Lip-Bu Tan's leadership.

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