Intel (INCT) Tanks 7% After Bleak Q2 Outlook, Job Cuts—Q1 Performance Be Damned

Intel’s stock took a nosedive as investors balked at its grim Q2 forecast and fresh layoffs—proof that even strong quarterly results can’t outrun Wall Street’s knee-jerk panic.

The chip giant’s Q1 numbers? Solid. The market’s reaction? A brutal sell-off. Because nothing says ’efficient markets’ like ignoring actual performance to chase the next doom narrative.

Another day, another tech giant learning that fundamentals matter less than the hedge-fund herd mentality.

Q1 Results Spark Brief Optimism

Intel Corporation (NASDAQ: INTC) kicked off Thursday’s trading session on a positive note, gapping higher at the open and climbing nearly 4% by market close. The initial rally was powered by the chipmaker’s first-quarter earnings report, which beat expectations and offered some early signs of stabilization.

The company reported Q1 revenue of $12.67 billion, slightly above analyst estimates, with adjusted net income of $580 million—or 13 cents per share—outperforming projections. Although this marked a decline from last year’s $759 million, or 18 cents per share, it was still viewed as a step in the right direction by markets. Notably, Intel’s foundry business, which manufactures chips for third parties, delivered $4.7 billion in revenue, exceeding forecasts and hinting at potential growth avenues.

After-Hours Intel Share Price Reversal on Weak Q2 Outlook and Layoffs

However, investor enthusiasm quickly cooled after the bell, as Intel’s guidance for the second quarter landed well below Wall Street expectations. The company forecasted revenue between $11.2 billion and $12.4 billion, alongside breakeven adjusted EPS—both numbers falling short of consensus estimates. That sparked a sharp reaction in after-hours trading, sending INTC shares down to $20 before recovering slightly to $20.50.

Adding to the unease was confirmation of looming layoffs. Reports earlier in the week suggested Intel plans to cut more than 20% of its workforce, a move that, while potentially beneficial for cost reduction, raised concerns about the company’s long-term strategic direction and internal morale.

Technical Picture: Support Holds Firm for INTC

From a technical standpoint, Intel’s stock has been trapped in a wide, sideways range since last August, oscillating between the low $18s and upper $26s. On the weekly chart, the 50-day simple moving average (SMA) continues to act as strong resistance, while the $18 level provides a crucial support floor.

This week’s price action reflected that dynamic once again. INTC had been gradually climbing from the lower end of the range and finished Thursday’s session at $21.49. But the bearish after-hours move pulled the price back toward the middle of that channel, suggesting a continued lack of clear direction in the NEAR term.

Outlook: Long Road to Recovery

CEO Lip-Bu Tan, who recently assumed leadership at Intel, struck a cautiously optimistic tone, acknowledging that while the Q1 results represented “a step in the right direction,” there are no quick fixes. His comments reflect the broader challenge Intel faces as it attempts to regain market share in a competitive semiconductor landscape dominated by names like Nvidia and AMD.

While the Q1 beat provided a short-term boost, the combination of a weak Q2 forecast and significant layoffs has clearly rattled investor confidence. Until there’s more clarity on Intel’s turnaround strategy and performance trajectory, INTC is likely to remain stuck in its current holding pattern.