Intel Stock Drops After Q4 Earnings: Is INTC a Buy Now?

Core Viewpoint - Intel's shares declined despite beating fourth-quarter earnings expectations, primarily due to a cautious first-quarter outlook that raised investor concerns about operational challenges ahead [1]. Financial Performance - For Q4, Intel reported revenue of $13.7 billion, exceeding Wall Street estimates and the company's own guidance, with growth driven by AI infrastructure investments and double-digit demand increases in AI-enabled PCs, traditional server products, and networking solutions [2]. - Adjusted earnings per share for Intel were $0.15, significantly above the guidance of $0.08 and analyst expectations, attributed to higher revenue, improved gross margins, and effective cost management [3]. Near-Term Outlook - Despite a strong Q4 performance, Intel's near-term outlook is concerning, with anticipated supply constraints in Q1 2026 due to exhausted inventory and a shift in wafer production towards server products that will not fully materialize until late Q1 2026 [4]. - For Q1, Intel is guiding revenue of $12.2 billion, which is below Wall Street's expectation of $12.6 billion, indicating a weaker start to the year than anticipated, with profitability expected to be at breakeven, falling short of analyst consensus [5].