Investing.com -- Intel (NASDAQ:INTC) posted mixed first-quarter results and softer guidance for the current quarter, stoking concerns that the chipmaker could fall further behind its rivals in the race to cash in on soaring demand for artificial intelligence-related chips.
Shares in Intel fell in premarket trading on Friday following the report.
For the second quarter, the company guided for adjusted earnings per share (EPS) of $0.10 on revenue between $12.5 billion to $13.5B, missing estimates for adjusted EPS of $0.26 on revenue of $13.66B.
The figures come after Intel said earlier this month that losses at Intel Foundry, its chipmaking business division, widened to $7 billion in 2023 from $5.2B in the prior year.
"We’d like to believe the bottom is in but we have lost count of the times we have heard it, and frankly there isn’t really much to say here beyond the obvious. The near term remains extremely challenged," analysts at Bernstein said in a note to clients.
For the three months ended Mar. 30, adjusted earnings per share (EPS) came in at $0.18 a share on revenue of $12.72B, compared with Wall Street estimates for EPS of $0.15 and revenue of $12.88B
"Looking ahead, we expect to deliver year-over-year revenue and non-GAAP EPS growth in fiscal year 2024, including roughly 200 basis points of full-year gross margin improvement," the company said Thursday.