Shares of Intel (INTC) are down 8% after the semiconductor firm reported disappointing first-quarter earnings and issued downbeat ahead steering.

Intel introduced earnings per share (EPS) of $0.18 U.S. versus $0.14 U.S. that was anticipated on Wall Road.

Income in Q1 got here in at $12.72 billion U.S. versus $12.78 billion U.S. that was anticipated amongst analysts who monitor the corporate’s progress. Gross sales have been up 9% from a yr in the past.

The newest earnings report was the primary because the firm revealed that it had made its chip manufacturing enterprise, known as “Intel Foundry,” a separate line merchandise.

Intel Foundry reported $4.4 billion U.S. in income through the quarter, down 10% from a yr earlier, mentioned the corporate.

Intel’s greatest enterprise stays the chips it makes for private computer systems (PCs) and laptops, which is reported as “Consumer Computing” gross sales. These chip gross sales totaled $7.50 billion U.S., up 31% from a yr earlier.

Intel additionally makes central processors for servers which might be reported in its Knowledge Heart and AI enterprise. That unit noticed gross sales rise 5% to $3 billion U.S. throughout Q1.

Earlier in April, Intel launched a brand new synthetic intelligence (AI) processor for servers known as the “Gaudi 3” that’s meant to compete towards rival Nvidia’s (NVDA) graphics processing items.

Wanting forward, Intel mentioned that it expects earnings of $0.10 U.S. a share on income of $13 billion U.S.

That forecast compares to Wall Road expectations for earnings of $0.25 U.S. a share on $13.57 billion U.S. of income.

Previous to in the present day (April 26), Intel’s inventory had declined 27% thus far in 2024 and was buying and selling at $35.11 U.S. per share.