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Intel Corporation (NASDAQ:INTC) shares are experiencing significant pressure on Friday, July 25, 2025, following the company’s disappointing second-quarter earnings report. The semiconductor giant reported quarterly earnings per share of -$0.10, substantially missing analyst expectations by 171.81%.
Trading at $21.20 in premarket hours as of 6:02:31 AM EDT, the stock has declined -$1.43 (-6.32%) from Thursday’s close of $22.63. The earnings miss, combined with mounting concerns about Intel’s foundry business viability and broader operational challenges, has sparked renewed investor skepticism about the company’s turnaround prospects.
Intel Reports Disappointing Q2 Earnings Results
Intel’s second-quarter 2025 financial results delivered a significant blow to investor confidence, with the company posting earnings per share of -$0.10 compared to the expected break-even result. This represents a massive 171.81% miss against analyst projections, marking one of the company’s most substantial earnings disappointments in recent quarters. The loss contrasts sharply with Intel’s previous quarterly performance, where the company had managed to beat earnings expectations in Q4 2024 and Q1 2025.
Despite the earnings shortfall, Intel did manage to generate revenue of $12.86B for the quarter, though specific comparisons to analyst revenue expectations were not detailed in the available data. The company’s trailing twelve months earnings per share stands at -$4.77, reflecting the ongoing financial challenges Intel faces as it attempts to execute its ambitious turnaround strategy.
The disappointing results have intensified scrutiny of CEO Pat Gelsinger’s leadership and the company’s ability to compete effectively in the rapidly evolving semiconductor landscape.
The earnings miss comes at a particularly critical time for Intel, as the company continues to invest heavily in manufacturing capabilities while facing intense competition from rivals like NVIDIA (NASDAQ:NVDA) and AMD (NASDAQ:AMD) in key growth markets including artificial intelligence and data center processors.
Analysts had been cautiously optimistic about Intel’s recovery trajectory, but these results suggest the company’s transformation efforts may take longer than anticipated to yield positive financial returns.
Intel’s Foundry Business Under Existential Threat
Recent reports indicate that Intel’s foundry business, a cornerstone of the company’s long-term strategic vision, faces significant exit risks that could fundamentally reshape the semiconductor giant’s future.
The foundry division, which was central to Intel’s plan to compete with Taiwan Semiconductor Manufacturing Company and other contract chip manufacturers, has struggled to gain meaningful market traction despite substantial capital investments. This development is particularly concerning given Intel’s multi-billion dollar commitment to building advanced manufacturing facilities across the United States as part of the CHIPS Act initiative.
The potential foundry business exit would represent a major strategic pivot for Intel, forcing the company to refocus on its core processor design and manufacturing operations. Such a move would likely result in substantial write-downs of foundry-related assets and could impact Intel’s relationships with key government partners who have supported the company’s domestic manufacturing expansion.
The foundry struggles also raise questions about Intel’s ability to achieve the scale necessary to compete effectively in advanced node manufacturing, where TSMC currently dominates.
Industry observers note that Intel’s foundry challenges reflect broader difficulties in the capital-intensive semiconductor manufacturing sector, where success requires not only technological expertise but also the ability to secure major customer commitments.
The company’s announcement of major job reductions to streamline operations further reflects the urgency of addressing these foundry-related headwinds. If Intel ultimately exits the foundry business, it would mark a significant retreat from one of its most ambitious strategic initiatives in recent years.
Intel Stock Takes a Hit
Intel’s stock performance has been characterized by significant volatility and long-term underperformance relative to both sector peers and broader market indices. The current price represents a substantial decline from the stock’s 52-week range of $17.67 to $31.56, with shares currently trading closer to the lower end of this range.
Year-to-date, Intel has gained 12.87%, though this positive return masks the stock’s longer-term struggles, including a -28.16% decline over the past year compared to the S&P 500’s +17.25% gain during the same period.
The stock’s technical indicators paint a mixed picture, with analyst price targets showing considerable dispersion ranging from a low of $14.00 to a high of $28.30, averaging $21.77. This wide range reflects the uncertainty surrounding Intel’s turnaround prospects and the various scenarios analysts are modeling for the company’s future performance.
The current trading volume of 113,262,008 shares significantly exceeds the average volume of 77,592,257, indicating heightened investor interest and potential institutional repositioning following the earnings announcement.
Market sentiment toward Intel has been further complicated by the company’s underperformance relative to semiconductor peers like NVIDIA and AMD, both of which have benefited more directly from the artificial intelligence boom.
Intel’s trailing price-to-earnings ratio remains undefined due to the company’s recent losses, while traditional valuation metrics have become less reliable indicators of the stock’s fair value. The combination of execution challenges, competitive pressures, and strategic uncertainties continues to weigh on investor confidence, contributing to the stock’s ongoing volatility and premarket weakness.
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