Intel slides in afterhours trading as Q1 revenue misses, Q2 outlook falls short

Investing.com -- Intel reported Thursday mixed Q1 results and softer guidance for the current quarter, stoking further concerns that the chipmaker could fall further behind in its rivals in the race to cash in on strong demand for AI-related chips.

For Q2, the company guided for adjusted earnings of $0.10 on revenue between $12.5 billion to $13.5B, missing estimates for adjusted EPS of $0.26 on revenue of $13.66B.

The weaker guidance added to concerns that Intel could fall further behind its rivals in the AI race. 

Earlier this month, Intel said losses at Intel Foundry, its chipmaking business division, widened to $7 billion this year from $5.2B in 2023. 

The chipmaker also reported mixed Q1 results, as earnings beat, but revenue missed analyst estimates.  

For the three months ended Mar. 30, the chipmaker reported adjusted earnings of $0.18 a share on revenue of $12.72B, compared with Wall Street estimates for EPS of $0.15 and revenue of $12.88B

"Looking ahead, we expect to deliver year-over-year revenue and non-GAAP EPS growth in fiscal year 2024, including roughly 200 basis points of full-year gross margin improvement," the company said Thursday.

Intel Corporation (NASDAQ:INTC) fell more than 8% in afterhours following the report.