Intel Stock Slides Despite Earnings Beat as Weak Q1 Outlook Raises Concerns

Intel Corporation (NASDAQ: INTC) shares plunged 13.4% on Thursday after the semiconductor giant delivered a weaker-than-expected outlook for the first quarter, overshadowing its better-than-anticipated fourth-quarter earnings and revenue results. The sharp market reaction highlights ongoing investor concerns around supply constraints, near-term profitability, and Intel’s transition to next-generation manufacturing technologies.

For the fourth quarter, Intel reported adjusted earnings of $0.15 per share, beating Wall Street estimates of $0.08. Revenue reached $13.7 billion, also surpassing the consensus forecast of $13.41 billion. However, despite the earnings beat, overall revenue declined 4% year over year, reflecting continued pressure in key business segments amid a challenging macro and competitive environment.

The company’s guidance for the current quarter weighed heavily on investor sentiment. Intel projected breakeven earnings per share for the first quarter, falling short of analysts’ expectations of $0.05. Revenue guidance was set between $11.7 billion and $12.7 billion, below the $12.55 billion consensus estimate. Chief Financial Officer David Zinsner noted that Intel expects its available supply to reach its lowest point in Q1 before improving in the second quarter and beyond, underscoring near-term operational headwinds.

Segment performance was mixed. Intel’s Data Center and AI division delivered a bright spot, posting a 9% year-over-year revenue increase, signaling growing demand for AI-related infrastructure. In contrast, the Client Computing Group, Intel’s largest business unit, saw revenue fall 7% compared to the prior year, reflecting softer PC demand.

Chief Executive Officer Lip-Bu Tan highlighted progress in advanced manufacturing, emphasizing the launch of the company’s first products built on the Intel 18A process, which he described as the most advanced U.S.-developed semiconductor technology to date. Intel also recently introduced the Intel Core Ultra Series 3 processors, its first AI PC platform based on Intel 18A, expected to support more than 200 device designs globally.

For full-year 2025, Intel reported flat revenue of $52.9 billion and adjusted earnings per share of $0.42, marking a significant turnaround from the $0.13 per-share loss recorded in 2024. While long-term initiatives in AI and manufacturing remain promising, investors appear cautious as Intel navigates short-term supply challenges and earnings pressure.