Intel Stock: Chipmaker Beats Views But Gives Mixed Guidance

Chipmaker Intel (INTC) late Thursday beat Wall Street’s targets for the first quarter but offered a mixed outlook for the second quarter. Intel stock rose in extended trading.

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The Santa Clara, Calif.-based company lost an adjusted 4 cents a share on sales of $11.72 billion in the March quarter. Analysts polled by FactSet had expected Intel to lose 16 cents a share on sales of $11.01 billion. In the year-earlier period, Intel earned 87 cents a share on sales of $18.35 billion.

For the current quarter, Intel forecast an adjusted loss of 4 cents a share on sales of $12 billion, based on the midpoint of its outlook. Wall Street had been expecting Intel to break even on sales of $11.74 billion in the second quarter.

“While we remain cautious on the macroeconomic outlook, we are focused on what we can control,” Chief Executive Pat Gelsinger said in a news release. That includes reaching product and manufacturing milestones, he said.

Intel Stock Seesaws After Report

In after-hours trading on the stock market today, Intel stock initially fell but later rebounded. In recent trades, it was up 4.8% to 31.30. During the regular session Thursday, Intel stock rose 2.8% to close at 29.86.

Intel’s Client Computing Group saw sales decline 38% year over year to $5.8 billion amid continued weak PC sales.

Meanwhile, sales in the company’s Data Center and AI unit decreased 39% to $3.7 billion. And Intel’s Network and Edge division reported a 30% sales drop to $1.5 billion.

Chip Firms Cut Forecasts

Semiconductor stocks have taken a hit this earnings season as many chipmakers cut their forecasts amid weakening demand.

Chipmakers guiding lower have included Impinj (PI), Mobileye (MBLY), Silicon Labs (SLAB), Taiwan Semiconductor Manufacturing (TSM) and Texas Instruments (TXN). MaxLinear (MXL) and Wolfspeed (WOLF) also disappointed investors with their guidance.

Intel stock ranks No. 18 out of 30 stocks in IBD’s semiconductor manufacturing industry group, according to IBD Stock Checkup. INTC stock has an IBD Composite Rating of 25 out of 99.

The Composite Rating scores a stock’s key growth metrics against all other stocks regardless of industry group.

Follow Patrick Seitz on Twitter at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.

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