Intel stock falls after company offers soft first-quarter guidance

Core Insights - Intel reported fourth-quarter earnings that exceeded Wall Street expectations but provided soft guidance for the upcoming quarter, leading to a 5% drop in after-hours trading [1] - The company anticipates first-quarter revenue between $11.7 billion and $12.7 billion, with adjusted earnings per share of 0 cents, falling short of LSEG expectations of 5 cents per share on $12.51 billion in sales [1] Financial Performance - Intel experienced a net loss of $600 million, or 12 cents per diluted share, compared to a net loss of $100 million, or 3 cents per share, in the same period last year [2] - The company reported revenue of $13.7 billion for the quarter, surpassing the estimated $13.4 billion [7] Business Developments - There is optimism regarding Intel's foundry business, which generated $4.5 billion in revenue, partly from manufacturing its own chips [4] - Strong sales of Intel's latest server chips contributed to a 9% year-over-year increase in Data Center and AI sales, totaling $4.7 billion [5] Technology Advancements - CEO Lip-Bu Tan indicated that Intel's 18A manufacturing technology has matured enough for volume production, with plans to increase supply to meet strong customer demand [3] - The company expects customers for its next-generation 14A technology to emerge in the second half of the year, with significant capital spending anticipated once customers are secured [4] Strategic Investments - Major investments from the U.S. government, SoftBank, and Nvidia have positioned them as significant shareholders in Intel, with a completed stock sale to Nvidia worth $5 billion during the quarter [6]