Intel Stock Plummets 6.70% on Disappointing Outlook Despite Record 16th Highest Trading Volume

On April 25, 2025, intel (INTC) experienced a significant decline, with its stock price dropping by 6.70%. The trading volume for the day was substantial, reaching $29.28 billion, making it the 16th highest in the market for that day.

Intel's first-quarter 2025 financial results revealed a mixed performance. The company reported adjusted earnings per share (EPS) of $0.13 on revenue of $12.7 billion, surpassing analyst expectations of $0.01 EPS on $12.3 billion in revenue. However, the outlook for the second quarter was less optimistic, with projected revenue ranging from $11.2 billion to $12.4 billion, falling short of Wall Street's expectations of $12.8 billion. This disappointing forecast overshadowed the earnings beat, leading to a significant drop in Intel's stock price.

Intel's CFO, David Zinsner, attributed the uncertainty in the outlook to the current macroeconomic environment, which is affecting the entire industry. The company is taking a disciplined approach to support continued investment in its core products and foundry businesses while maximizing operational cost savings and capital efficiency. Despite the challenges, Intel reported strong performance in its client computing and data center and AI segments, with revenues exceeding expectations.

Intel's new CEO, Lip-Bu Tan, acknowledged the company's past shortcomings in innovation and adaptation. During his first public comments at Intel Vision 2025, Tan emphasized the need for improvement and outlined his plans for the company's future. The market is eagerly awaiting news on how Tan will proceed with Intel's third-party foundry business, with analysts suggesting various strategies ranging from exiting the chip manufacturing business to scaling back its third-party chipmaking ambitions.

Ask Aime: Why did Intel's stock price drop despite Q1 earnings beat?