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

Intel INTC reported strong first-quarter 2025 results, beating estimates for both earnings and revenues. However, the chipmaker offered a downbeat outlook for the ongoing quarter, which sent shares plummeting 5.1% in aftermarket hours. 

Investors should keep a close eye on the ETFs having the highest allocation to the semiconductor player and tap the opportunity when it rises. These include REX FANG & Innovation Equity Premium Income ETF FEPI, ProShares Nanotechnology ETF TINY, Xtrackers Semiconductor Select Equity ETF CHPS, Themes Generative Artificial Intelligence ETF WISE and VanEck Vectors Semiconductor ETF SMH.

Intel Q1 Earnings in Focus

Intel reported earnings per share of 13 cents, which beat the Zacks Consensus Estimate by 12 cents but declined from the year-ago earnings of 18 cents. Revenues were flat year over year at $12.67 billion but edged past the estimated $12.32 billion. Data center and AI, and Intel Foundry revenues grew 8% and 7% respectively, while client computing revenues declined 8% (see: all the Technology ETFs here).

For the current quarter, Intel projects revenues of $11.2-$12.4 billion, below the Zacks Consensus Estimate of $12.84. It expects adjusted earnings to break even, again well below the Zacks Consensus Estimate of 6 cents. The softer guidance can be attributed to the tariffs, which will weigh on demand and supply chains.

Tan Lays Initiatives to Drive Growth

Appointed in March 2025, CEO Lip-Bu Tan is implementing significant changes to revitalize Intel's performance. He plans to flatten the corporate hierarchy to enhance decision-making and reduce bureaucracy. Tan plans to cut more than 20% of its staff to streamline operations and to implement a return-to-office policy. He made a four-day in-office workweek mandatory starting Sept. 1, 2025, to boost collaboration. The new CEO also targets $500 million in operating expense reductions for 2025 and an additional $2 billion in capital expenditure cuts. 

The move is part of new CEO Lip-Bu Tan's bid to turn around the struggling chipmaker, which has lost ground to rivals and seen three straight years of sales declines (read: Intel Q1 Earnings Coming Up: ETFs in Focus).

ETFs in Focus

REX FANG & Innovation Equity Premium Income ETF (FEPI)

REX FANG & Innovation Equity Premium Income ETF is an actively managed ETF providing exposure to leading tech firms within the equally weighted FANG & Innovation Index. It aims for enhanced income by selling out-of-the-money call options, harnessing big tech’s volatility while capping some of the potential stock gains. FEPI also uses the covered call approach to counterbalance potential market declines, seeking to offer mitigation from price declines on these big tech stocks. REX FANG & Innovation Equity Premium Income ETF holds 31 stocks in its basket, with Intel occupying the third position at 6.8% share. It trades in an average daily volume of 167,000 shares and charges 65 bps in annual fees. FEPI has AUM of $390.1 million. 

ProShares Nanotechnology ETF (TINY)

ProShares Nanotechnology ETF invests in companies that help businesses use nanoscale technology to transform lives and revolutionize industries. It follows the Solactive Nanotechnology Index and holds 30 securities in its basket, with Intel occupying the fourth position at 5.4% share. ProShares Nanotechnology ETF has accumulated $4.3 million in its asset base and trades in an average daily volume of 1,000 shares. It charges 58 bps in fees annually from investors.

Xtrackers Semiconductor Select Equity ETF (CHPS)

Xtrackers Semiconductor Select Equity ETF seeks to track the Solactive Semiconductor ESG Screened Index. It holds 53 stocks, with INTC being the top firm, accounting for a 5.2% share. Xtrackers Semiconductor Select Equity ETF charges 15 bps in annual fees and has AUM of $5.8 million. It trades in an average daily volume of 1,400 shares.

Themes Generative Artificial Intelligence ETF (WISE) 

Themes Generative Artificial Intelligence ETF seeks to track the Solactive Generative Artificial Intelligence Index, which identifies companies that derive their revenues from AI, Data Analytics & Big Data, Natural Language Processing, or Artificial Intelligence-Driven Services. It holds 41 stocks in its basket, with Intel occupying the sixth position at 4.8%. Themes Generative Artificial Intelligence ETF has amassed $22.8 million in its asset base and charges 35 bps in annual fees. It trades in an average daily volume of 11,000 shares.

VanEck Vectors Semiconductor ETF (SMH)

VanEck Vectors Semiconductor ETF offers exposure to companies involved in semiconductor production and equipment. It follows the MVIS US Listed Semiconductor 25 Index, which tracks the most liquid companies in the industry based on market capitalization and trading volume. VanEck Vectors Semiconductor ETF holds 26 stocks in its basket, with Intel accounting for 4.1%. VanEck Vectors Semiconductor ETF has managed assets worth $17.3 billion and charges 35 bps in annual fees and expenses. SMH trades in an average daily volume of 8.5 million shares and has a Zacks ETF Rank #1 with a High risk outlook (read: 5 Beaten-Down ETFs to Play on Hints of Trade De-escalation).

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This article originally published on Zacks Investment Research (zacks.com).

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