Intel’s stock fell sharply despite revenue growth and a $5 billion NVIDIA investment, raising doubts about its turnaround strategy.
Intel (INTC) shares plunged 8.18% in a single session after reporting a $3.73 billion GAAP net loss for the quarter, despite revenue rising 7.18% year over year to $13.58 billion. Non-GAAP earnings per share reached $0.29, beating consensus estimates of $0.0127, while gross margin improved to 41.0% from 39.2%.
The company has secured $5 billion from NVIDIA (NVDA) and $2 billion from SoftBank as part of its foundry and AI infrastructure push. Analysts remain cautious, with 31 of 48 rating Intel a Hold and a consensus price target suggesting 23% downside. The stock, trading at $127, has surged 278% under CEO Lip-Bu Tan but faces its first major pullback.
Data Center and AI revenue grew 22% year over year, a key focus for investors. The upcoming July 23 earnings report may determine whether the recent decline signals a broader trend or a temporary setback.