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Intel stock tanks after earnings show they're getting smoked by their rivals

Big tech’s money is going to data centers and chips. The problem for Intel is that it isn’t getting any.

The chip making powerhouse of yesteryear recorded a $1.61 billion loss and a 1 percent drop in revenue, per its earnings report released on Thursday. Adjusted earnings per share was 2 cents, compared to 10 cents expected by analysts.

Intel shares sank 29 percent on Friday morning, its biggest drop since 1974, marking over $35 billion in market cap erased. The stock is trading at its lowest since 2013.

The earnings miss resulted from a combination of overspending, competition, and product mix. CFO David Zinsner said that profitability was affected by the accelerated production of AI PC chips, while demand for personal computers declined last year. Customers also turned to rivals including Nvidiaand AMD, resulting in more competitive pricing. Meanwhile, CEO Patrick Gelsinger’s plan to build new factories also points to ongoing cost pressures.

Intel unveiled plans to cut costs, including slashing 15 percent of its workforce, or 17,500 jobs, and suspending its dividend.

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Microsoft shares have biggest single-day drop since March 2020

Yesterday, Microsoft reported strong earnings and revenue for its second quarter, but the stock plunged after hours. Investors seem to have been concerned about so much of Microsoft’s booked contracts coming from one company — OpenAI, as well as its slowing cloud growth.

Today, it got worse. Microsoft shares sunk 10%, suffering the largest single-day drop since the start of the COVID lockdown in March 2020.

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Matt Phillips36m

Western Digital beats Wall Street estimates for Q2 sales, EPS

Western Digital posted better-than-expected quarterly sales and EPS figures after the close Thursday, though the shares slipped after hours.

Here’s how the results looked:

Fiscal Q2 revenue was $3.02 billion vs. $2.93 billion consensus analyst expectations, per FactSet.
Adjusted earnings per share of $2.13 vs. the $1.93 analysts predicted.
Fiscal Q3 guidance for adjusted EPS of $2.15 to $2.45 vs. analyst estimates of $1.99.
Guidance for Q3 sales of $3.1 billion to $3.3 billion vs. estimates of $2.98 billion.

Western Digital — and rival Seagate Technology Holdings — were among the market’s best performers last year, rising 282% and 219%, respectively, as data storage became a key bottleneck for hyperscalers.

The shares are romping into 2026 as well, with both stocks up more than 60% in January through the close of trading on Thursday.

Sandisk fiscal Q2 earnings results

Sandisk blows past quarterly earnings expectations, forecasts blockbuster Q3 numbers

It was the best performer in the S&P 500 last year. It’s already doubled in January. And shares are soaring after hours.

Matt Phillips57m

Tasha Matsumoto

Stocks fall as software slump drags down the tech sector

Meta, Microsoft, and Tesla all posted earnings beats after the bell yesterday, but market reaction was mixed on worries of ballooning capex.

Chicago Bears quarterback Dave Krieg shows dejection during a game against the Green Bay Packers on October 6, 1996 in Chicago. Green Bay won the game 37-6.

Southwest Airlines Announces It's Ending Its Open Seating

Southwest logs its biggest gain since 1978, as it says bag fees and seating changes will quadruple profit

Southwest shares closed up 19% on Thursday, their biggest daily gain in nearly half a century.

Max Knoblauch3h

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