Intel Stock Plunges 7.38% on Earnings Miss, Strategic Uncertainty

Intel's stock price dropped 7.38% in pre-market trading on July 25, 2025, reflecting investor concerns over the company's financial performance and strategic decisions.

Intel reported a significant increase in operating losses, widening to $3.176 billion from $1.964 billion year-over-year. This financial setback, coupled with a decline in gross profit to $3.542 billion from $4.547 billion, has raised alarms among investors.

The company's forecast of steeper-than-expected quarterly losses and potential exit from its foundry business has further exacerbated market concerns. This news led to a 5% drop in Intel's shares in premarket trading on Friday.

Despite reporting a quarterly beat, Intel's stock fell 4.60% in extended trading on Thursday. The company's adjusted loss per share was $0.10 on revenue of $12.8 billion, missing Wall Street's expectations of $0.01 per share.

Intel's decision to cut 15% of its workforce amid a Q2 loss and forecasts of stronger Q3 performance has added to the complexity of the company's current situation. The workforce reduction is part of a broader strategy to streamline operations and focus on core competencies.

Overall, the combination of financial losses, strategic uncertainties, and workforce reductions has created a challenging environment for Intel, leading to significant volatility in its stock price.