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Intel forecasts revenue for the following quarter: Wall Street Thursday’s estimates cast a shadow over the backdrop of a raging Chinese trade war at the helm of new CEO Lip-Bu Tan’s first round.
Intel shares fell 5.8% in expanded trading.
Dour Outlook from Intel could be another source of pessimism for investors who rely on sunburn Turn the chip maker After years of failure, they struggle to gain foothold in the booming AI market.
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The Santa Clara, California-based company expects revenues of between $11.2 billion and $12.4 billion in the June quarter, compared to an analyst’s average estimate of $128.2 billion, according to data compiled by LSEG.
CFO David Zinsner said fear over tariffs has led customers to stockpile Intel chips, and sales have increased in the first quarter. The company is unable to determine the amount of profits, and expects the second quarter to suffer as a result.
Intel is forecasting second quarter revenue below Wall Street estimates on Thursday. (Reuters/Dadolvich/Reuters)
“Our guidance for this quarter of the second quarter is a reflection of this uncertainty caused by tariffs,” the finance chief said.
In its attempts by Tan to streamline the company and reduce costs, Intel said it had reduced its operating expense target in 2025 to about $17 billion, down from the previously stated target of $17.5 billion, with a target of $16 billion in 2026.
“There’s a lot of Intel bureaucracy that’s been built up over time,” Jinnah told Reuters. “He wants to cut all of that to make the engineers more successful and to make them launch their products faster. We have to go through all of that.”
The financial chief said it is not yet certain how the restructuring plan will affect employees as a whole, but that clarity will emerge once the company reports its second quarter results.
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In a note to employees prior to his initial conference call with analysts as CEO, Tan wrote it. Layoffs will begin in the second quarter And such changes will focus on reducing the company’s internal bureaucracy. Tan also plans to reduce the number and size of internal meetings.
“There is no way to avoid the fact that these important changes will reduce the size of our workforce,” Tan writes. “Like I said when I joined, we need to make some very difficult decisions to put us on a solid footing for our future.”
Starting September 1, Intel will require employees to return to the office four days a week, Tan’s Memo said.
| Ticker | safety | last | change | change % |
|---|---|---|---|---|
| INTC | Intel Corp. | 21.49 | +0.90 |
+4.37% |
The company also reduced its total capital expenditure in 2025 to $18 billion from its previous $20 billion target.
“Intel is taking action to drive more efficient execution across the business. This plan includes streamlining the organization and eliminating the management layer,” the company said in a statement.
US President Donald Trump At this time, we spare chips from Beijing’s high retaliation tax on US-made semiconductors.
Chips manufactured in the US are set to face more than 85% collection, based on a state-backed China Semiconductor Industry Association’s notice at the beginning of April.
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China imports $10 billion worth of chips from the United States every year. According to analysts at Bernstein, the central processing unit (CPU) assembled by US Intel is around $8 billion.
Intel first quarter revenue It was flat at $12.67 billion. The results exceed the $1200 billion estimate.
The company expects to have a uniform adjustment earnings per second quarter compared to its earnings estimate of 6 cents per share.
“The cautious (second quarter) outlook incorporates tariff uncertainty combined with a competitive environment for both PC clients and data center markets,” said Kingaychan, Summit Insights Analyst.
Pat Gelsinger, former CEO of Intel. (Photographer: I-Hwa Cheng/Bloomberg via Getty Images)
Intel’s willingness to become a contract maker for Chips, a strategy defended by Tan’s predecessor Pat Gelsinger, has strained the company’s finances as it pours billions of dollars into establishing sophisticated manufacturing facilities.
