Why Did Intel Stock Drop Friday?

Intel reported strong Q2 earnings with pro forma EPS of $0.42 (beating $0.21 expectations) and sales of $16.1 billion (vs. $14.3B expected), marking its best sales performance in 15 years. However, GAAP earnings showed a loss of $2.16 per share, causing the stock to drop 4-6% despite positive indicators including improved gross margins (40.4%), positive free cash flow of $1.9 billion, and guidance for continued margin expansion and potential Q3 GAAP profitability.