From “Nasdaq”:

Intel’s stock dropped 12% after Q4 earnings release and underwhelming guidance for Q1. Despite high investor sentiment for chip stocks, INTC shares are down 13% YTD, but climbed 55% in the last year. Intel’s Q4 sales of $15.4 billion came in 2% better than expected, with earnings up +440% from last year.

Intel plans to compete with Nvidia and AMD by continuing to build its external foundry business and at-scale global manufacturing to drive long-term value for shareholders. With challenging headwinds in Mobileye segment, Intel offers weak Q1 revenue guidance of $12.2 billion-$13.2 billion, below most analysts’ expectations.

Intel’s Q4 EPS of $0.54 topped the Zacks Consensus of $0.44 by 23%, marking Intel’s fourth straight quarter of topping earnings estimates. Intel’s Q4 sales rose 10% year over year due to consistent execution and accelerated innovation.

Q1 guidance led to a 13% stock selloff with INTC offering first quarter revenue guidance below most analysts’ expectations and the current Zacks Consensus of $14.3 billion. Intel expects Q1 earnings to be at $0.13 a share, well below the current Zacks Consensus.

With earnings estimates likely to decline due to weaker-than-expected guidance, it may be too soon to buy the dip in Intel’s stock despite a Zacks Rank #3 (Hold). The company’s outlook should be closely monitored going forward, as it continues to reward longer-term investors in time.

Intel’s future will be interesting to watch as the company transforms and competes in the AI space, making it a stock to watch in 2023.



Read more: Should Investors Buy the Dip in Intel’s Stock After Earnings?