Why Intel Stock Is Plunging Today

Core Viewpoint - Intel's stock is experiencing significant sell-offs despite reporting better-than-expected first-quarter sales and earnings, primarily due to weak forward guidance and macroeconomic challenges [2][3]. Financial Performance - Intel reported non-GAAP earnings per share of $0.13 on revenue of$12.67 billion, surpassing analyst estimates of $0.01 per share on sales of$12.3 billion [3]. - The company's midpoint guidance for the second quarter targets sales of $11.8 billion, indicating a potential sequential revenue decline of approximately 7$0.06 per share for the period [4]. Market Dynamics - The sell-off in Intel's stock is attributed to trade war dynamics and macroeconomic uncertainty, which may have led customers to pull orders forward [3]. - Despite the strong Q1 performance, the company's near-term guidance has raised concerns among investors, prompting significant stock declines [2][3]. Foundry Business Developments - Intel's CEO Lip-Bu Tan mentioned discussions with Taiwan Semiconductor Manufacturing Company (TSMC) regarding potential collaboration, which could involve TSMC taking a 20% stake in a new joint venture to support Intel's foundry operations [5]. - The foundry business is seen as a critical national resource for the U.S., but it has been incurring substantial losses, leading investors to hope for assistance from TSMC or other major chip manufacturers [6].