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Intel stock slides on second-quarter revenue miss

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Intel reported disappointing second-quarter earnings, and Yahoo Finance's Jared Blikre breaks it all down.

Video Transcript

DAVE BRIGGS: Intel just reported second quarter earnings after the bell. Yahoo Finance's Jared Blikre here on the same day that the CHIPS Act passes the House, which really benefits Intel. And shares are plummeting, Jared.

JARED BLIKRE: Dave, ironic that there is no boost from that. Let's take a look at the numbers because I actually-- let me begin with a quote from the CEO, Pat Gelsinger. We must and will do better. And we're going to go over those numbers, see if they can improve upon them. Adjusted EPS for the second quarter coming at $0.29. The estimate was for double that, $0.69-- more than double that. And then just going down the numbers, client computing revenue, 7.7 billion. The estimate was for 8.8 billion. Data center, 4.6 billion. Estimates, 6.04 billion.

Network was one of the few beats here, 2.3 billion. The estimate was for slightly higher, 2 point-- or slightly lower, 2.26 billion. Now on to the forecast. This is where it gets a little bit scary. Seeing adjusted revenue of $65 to $68 billion. Previously, they saw 76. That's 8 billion higher, and the estimate on Wall Street was about 74 and 3/4 billion. Also there, we're seeing adjusted EPS-- they are seeing adjusted EPS of $2.3, $2.30. Previously, they saw $3.60. Estimate was for $3.39.

Adjusted gross margin for the full year, seeing 49%. And the estimate was for higher at 51.8%. Finally, capital expenditures, $23 billion, whereas before, they saw 27 billion. The Street had an estimate a little bit lower than that. They are in the midst of a turnaround strategy right now. And execution wise, we got to wonder if this is just an-- excuse me-- if this is an idiosyncratic story-- I'll get that out-- or if this is just about the industry as a whole.

I want to go to the YFi Interactive. And we are seeing the share is down about 9%, 10% right now. Actually, 7 and 3/4. But let's check out a year to date chart. It is down 23%. Chips being very highly levered to the economy. We did get that negative GDP print earlier today. That's backwards-looking. But everybody wants to know, are people still buying chips, and are manufacturers able to deliver them to market? Guys.