Intel Beats on Q1 Earnings, Offers Weak Outlook: ETFs in Focus

Core Insights - Intel reported strong first-quarter 2025 results, beating estimates for both earnings and revenues, but provided a downbeat outlook for the ongoing quarter, leading to a 5.1% drop in shares during aftermarket hours [1][3]. Financial Performance - Earnings per share for Q1 2025 were 13 cents, exceeding the Zacks Consensus Estimate by 12 cents, but down from 18 cents in the previous year [3]. - Revenues remained flat year-over-year at $12.67 billion, surpassing the estimated $12.32 billion [3]. - Data center and AI revenues grew by 8%, while Intel Foundry revenues increased by 7%, but client computing revenues declined by 8% [3]. Future Outlook - For the current quarter, Intel projects revenues between $11.2 billion and $12.4 billion, below the Zacks Consensus Estimate of $12.84 billion [4]. - Adjusted earnings are expected to break even, significantly lower than the Zacks Consensus Estimate of 6 cents [4]. - The softer guidance is attributed to tariffs impacting demand and supply chains [4]. Strategic Initiatives - CEO Lip-Bu Tan, appointed in March 2025, is implementing significant changes to revitalize Intel's performance, including flattening the corporate hierarchy and reducing bureaucracy [5][6]. - Plans include cutting more than 20% of the workforce and implementing a mandatory four-day in-office workweek starting September 1, 2025, to enhance collaboration [5]. - The new CEO targets $500 million in operating expense reductions for 2025 and an additional $2 billion in capital expenditure cuts [5]. ETFs with Intel Exposure - REX FANG & Innovation Equity Premium Income ETF (FEPI) holds Intel at a 6.8% share, with AUM of $390.1 million and an average daily volume of 167,000 shares [7]. - ProShares Nanotechnology ETF (TINY) has Intel at a 5.4% share, with AUM of $4.3 million and an average daily volume of 1,000 shares [8]. - Xtrackers Semiconductor Select Equity ETF (CHPS) lists Intel as the top firm with a 5.2% share, managing $5.8 million in assets [9][10]. - Themes Generative Artificial Intelligence ETF (WISE) includes Intel at a 4.8% share, with AUM of $22.8 million [11]. - VanEck Vectors Semiconductor ETF (SMH) has Intel accounting for 4.1% of its holdings, with managed assets of $17.3 billion and an average daily volume of 8.5 million shares [12].