Shares of Intel (INTC) are down 8% after the semiconductor company reported disappointing first-quarter earnings and issued downbeat forward guidance.
Intel announced earnings per share (EPS) of $0.18 U.S. versus $0.14 U.S. that was expected on Wall Street.
Revenue in Q1 came in at $12.72 billion U.S. versus $12.78 billion U.S. that was expected among analysts who track the company’s progress. Sales were up 9% from a year ago.
The latest earnings report was the first since the company revealed that it had made its chip manufacturing business, called “Intel Foundry,” a separate line item.
Intel Foundry reported $4.4 billion U.S. in revenue during the quarter, down 10% from a year earlier, said the company.
Intel’s biggest business remains the chips it makes for personal computers (PCs) and laptops, which is reported as “Client Computing” sales. Those chip sales totaled $7.50 billion U.S., up 31% from a year earlier.
Intel also makes central processors for servers that are reported in its Data Center and AI business. That unit saw sales rise 5% to $3 billion U.S. during Q1.
Earlier in April, Intel released a new artificial intelligence (AI) processor for servers called the “Gaudi 3” that’s intended to compete against rival Nvidia’s (NVDA) graphics processing units.
Looking ahead, Intel said that it expects earnings of $0.10 U.S. a share on revenue of $13 billion U.S.
That forecast compares to Wall Street expectations for earnings of $0.25 U.S. a share on $13.57 billion U.S. of revenue.
Prior to today (April 26), Intel’s stock had declined 27% so far in 2024 and was trading at $35.11 U.S. per share.
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