Investor sentiment around Intel weakened sharply after the chipmaker issued a softer than expected revenue and profit forecast and flagged ongoing supply chain disruptions. The warning overshadowed some better than expected earnings metrics and raised fresh concerns about the company’s turnaround efforts.
In the fourth quarter, Intel reported revenue of $13.7 billion, marking a 4% year over year decline. Lower sales from the Client Computing Group, which includes its PC chip business, weighed on overall performance and offset growth seen in the Data Centre and AI segment. Despite the revenue drop, Intel delivered adjusted earnings per share of $0.15, beating market expectations of $0.08.
Markets reacted negatively to the company’s forward guidance. Intel projected first quarter revenue in the range of $11.7 billion to $12.7 billion, with the midpoint below analyst estimates of $12.5 billion. The company also said it expects adjusted earnings to break even, while consensus forecasts had pointed to profits of $0.05 per share. Addressing the issue during the earnings call, CEO Lip Bu Tan said, “In the short term, I am disappointed that we are not able to fully meet the demand in our markets.”
The supply challenges have also raised doubts about Intel’s ability to attract more foundry customers away from Taiwan Semiconductor Manufacturing, a key pillar of Tan’s long term strategy to scale Intel’s manufacturing business. The uncertainty has added pressure on the stock, as investors weigh execution risks against future growth plans. A separate investment advisory group also noted that Intel was not among its current top stock picks, highlighting broader caution around the company’s near term outlook.
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