Intel Projects Disappointing Q2 Revenue Amid Workforce Cuts

Intel reported first-quarter revenue and adjusted earnings that exceeded analyst expectations, driven by strength in its data center and AI segments, but issued a weak second-quarter outlook that fell short of Wall Street forecasts. The company projected Q2 revenue of $11.2 billion to $12.4 billion and breakeven adjusted earnings per share, both below consensus estimates, causing its shares to drop more than 6% in after-hours trading. Intel also announced plans to cut more than 20% of its workforce to streamline costs, with the new CEO Lip-Bu Tan emphasizing efforts to drive operational efficiency and recover market share. While the foundry division outperformed projections, its client computing group continued to face challenges amid a competitive industry landscape. The disappointing outlook was attributed in part to macroeconomic uncertainty and looming tariffs on semiconductors, which could further impact the company's performance. Despite recent positive earnings, the weak forecast and restructuring plans underscore the ongoing challenges Intel faces in regaining its competitive edge.