Intel Stock Plummets As Wall Street Trims Price Targets On Underwhelming Q2 Guidance

Intel (INTC) shares dropped more than 8% at the opening bell on Friday as Wall Street trimmed its price targets on the stock following the company's underwhelming outlook for the second quarter.

Intel said it expects second-quarter (Q2) revenue to be between $11.2 billion and $12.4 billion, missing analysts’ forecast of $12.8 billion.

“The current macro environment is creating elevated uncertainty across the industry, which is reflected in our outlook,” Intel CFO David Zinsner stated.

JPMorgan lowered its price target to $20 from $23 and kept an ‘Underweight rating on Intel’s stock, stating that Intel guided “well below” the consensus for the June quarter in a note to investors cited by TheFly. 

It also attributed the price cut to management, saying that their prior PC and server growth outlooks are at risk.

Meanwhile, Morgan Stanley trimmed its price target on the stock to $23 from $25, with an ‘Equal Weight’ rating. 

The brokerage stated that while second-quarter guidance was weaker than expected, the bigger concern was the “the path here is a long and challenging turnaround” narrative surrounding the CEO change from Pat Gelsinger to Lip-Bu Tan.

It also noted that product issues were slightly negative, as shortages of Intel 7 and assessments of the server roadmap raised questions.

Rosenblatt and UBS also lowered their price targets on Intel’s stock to $14 and $21, respectively.

Wells Fargo lowered its target on the shares to $22 from $25 and kept an ‘Equal Weight’ rating. “With a de-risked 2Q25 guide and few surprises, Intel remains a prove-it story - albeit with minimizing downside,” the brokerage said. 

It added that Intel’s turnaround continues to hinge on the company’s 18A semiconductor manufacturing process, future process competitiveness, and external Foundry momentum.

Intel reported earnings per share (EPS) of $0.13 and revenue of $12.7 billion for the first quarter of 2025, exceeding the Koyfin-compiled consensus that called for break-even results and revenue of $12.31 billion. 

Intel’s stock is down nearly 45% over the past 12 months, with its value slipping 3.6% so far in 2025.

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