Intel Stock Drops Despite Strong Q1 Earnings, Lags Behind Peers in Market Performance

Intel (INTC) shares fell 1.63% on May 6, 2025, marking the second consecutive day of decline, with a total decrease of 3.30% over the past two days. The company's first-quarter 2025 earnings report exceeded expectations, with revenue reaching $12.67 billion and a gross profit margin of 39.2%. Despite the positive financial performance, the stock price has been under pressure due to investor concerns about the company's long-term prospects and the effectiveness of its turnaround strategies.

Intel's first-quarter 2025 earnings report showed revenue of $12.7 billion, which was flat compared to the same period last year but toward the high end of guidance. The gross margin also exceeded guidance, indicating improved operational efficiency. However, the company's outlook for the rest of the year was not as optimistic, with management expressing caution about the macroeconomic environment and geopolitical uncertainties.

Intel's CEO, Lip-Bu Tan, unveiled a new turnaround plan in April 2025, but the plan did not impress most investors, leading to an 11.5% drop in the stock price for the month. The plan focuses on cost-cutting measures, strategic divestments, and a renewed focus on key growth areas such as artificial intelligence and data center solutions. However, investors remain skeptical about the company's ability to execute on these initiatives and compete effectively in the rapidly evolving semiconductor industry.