The hedge fund has told the company it should consider outsourcing its manufacturing operations to keep pace with rivals in the sector such as Taiwan-based TSMC and South Korean giant Samsung.
The lack of a strong embrace of outsourcing from new CEO Pat Gelsinger drove shares down 4.7% after hours. Shares rose 6.5% during regular trade, when the results were released ahead of the close.
While Intel remains one of the world's leading chip companies, it has lagged behind rivals in the fast-growing segment of mobile devices, and its chips are being phased out by Apple, which is developing its own microprocessors for its Mac computers.
The setbacks will have little effect in the next few quarters, but will cause a years-long domino effect, delaying chips meant to counter the rise of rivals Advanced Micro Devices Inc and Nvidia Corp until late 2021 or even 2023.