Intel Clings to Critical Support Level as Foundry Business Shows Strength—Q2 Guidance Still a Wet Blanket
Intel’s stock teeters above make-or-break technical support despite its foundry division finally showing signs of life. The chip giant’s Q2 outlook? About as inspiring as a spreadsheet at a rave.
Foundry improvements suggest Pat Gelsinger’s turnaround plan isn’t completely hallucinatory—but weak forward guidance proves Wall Street’s favorite semiconductor dinosaur still can’t outrun its own legacy bloat.
Analysts nod politely while quietly calculating how much longer they can keep pretending ’AI PC’ isn’t just marketing department hopium.
Intel Clings to Support Amid Cautious Outlook
Intel (NASDAQ: INTC) has been trading sideways since August 2023, locked within a broad range between the low $18s and the upper $26s. This week, the chipmaker once again bounced off the key $18 support area, even as its second-quarter sales forecast fell short of expectations.
While the broader range remains intact, recent price action has narrowed into the lower half. The 50-day simple moving average (SMA) had been acting as overhead resistance, but now the 20-week SMA has taken that role more prominently, capping recent rallies.
Intel Earnings Beat, But Weak Guidance Weighs
After markets closed Thursday, Intel reported adjusted Q1 earnings of $0.13 per share—well ahead of consensus expectations for break-even results. Revenue for the quarter came in at $12.67 billion, also slightly above analyst projections of $12.2 billion.
One bright spot was Intel’s foundry division, which manufactures chips for other firms. That segment delivered $4.7 billion in revenue, surpassing expectations and offering hope for long-term growth in a highly competitive market.
However, Optimism was tempered by a downbeat Q2 revenue outlook. Intel projected sales of $11.2–$12.4 billion, notably below the $12.8 billion Wall Street consensus. This cautious guidance sparked an immediate after-hours selloff.
CEO Tan Admits Missteps, Vows Agility
At Intel Vision 2025, CEO Lip-Bu Tan, who was delivering his first earnings report at the helm, acknowledged that Intel had fallen behind in innovation. “We’ve been too slow to adjust and satisfy your needs,” Tan said, pledging a renewed focus on performance, agility, and customer trust.
His candid remarks were a rare admission of past failures, but they signaled a clear desire to reset expectations and rebuild credibility with investors.
Price Action: INTC Support Holds, Volatility Lingers
INTC shares closed Thursday at $21.49, then opened sharply lower Friday at $19.74—down more than 7%. However, sentiment across the broader equity markets turned positive by the end of the day, helping Intel recover and finish the week at $20.05.
The after-hours slide briefly pushed the stock below $20, but the underlying support level remains intact for now. As long as the $18 zone holds, investors may continue giving Intel the benefit of the doubt, especially if its foundry growth gains momentum.
