Intel Beats Wall Street in Q1 Earnings, Yet Faces Challenges: What Investors Need to Know

Intel, a major chipmaking company based in Santa Clara, California, outperformed Wall Street’s expectations in the first quarter but provided lower guidance for the current quarter. Despite this, Intel stock fell by 7% in after-hours trading to $32.65. However, during regular trading on Thursday, the stock rose by 1.8%, closing at $35.11. The company reported adjusted earnings of 18 cents per share on sales of $12.72 billion for the March quarter, exceeding analyst estimates of 14 cents per share on sales of $12.8 billion. In the same period last year, Intel reported a loss of 4 cents per share on sales of $11.72 billion.

Following the earnings report, other companies such as STMicroelectronics and Mobileye Global also reported their first-quarter results. STMicroelectronics missed analyst estimates and provided a lower guidance for the current quarter due to weak performance in the automotive and industrial chip markets. On the other hand, Mobileye Global delivered mixed Q1 results and issued in-line sales guidance for the upcoming year. Mobileye specializes in producing chips and hardware for advanced driver assistance systems and autonomous vehicles.

In terms of stock performance, Intel ranks at No. 16 out of 33 stocks in IBD’s semiconductor manufacturing industry group with a poor IBD Composite Rating of 38 out of 99. However, companies like Impinj, Lam Research, and Texas Instruments have also reported positive results in the chipmaking industry, highlighting various opportunities and challenges in the market.

Investors can follow Patrick Seitz on X for more stories on consumer technology, software, and semiconductor stocks.

MarketSurge offers research, charts, data