Intel reported fourth-quarter earnings that beat estimates, despite a 4% revenue drop. Weak guidance for the first quarter was attributed to supply constraints. Investors must be patient with Intel’s turnaround under new CEO Lip-Bu Tan. The stock surged in 2025 but dropped 16% after the earnings report. Analysts expect single-digit revenue growth through 2027.

Revenue fell 4% to $13.7 billion in the fourth quarter, exceeding estimates. Adjusted earnings per share rose to $0.15, beating expectations at $0.08. Intel expects revenue of $11.7 billion-$12.7 billion for the first quarter with break-even adjusted earnings per share. The company anticipates supply constraints in Q1 before improving in Q2 and beyond.

There seems to be a gap between expectations and reality for Intel’s turnaround. The stock’s surge may not reflect the time needed for business momentum. Analysts project single-digit revenue growth through 2027. Intel’s high price-to-earnings ratio suggests high expectations are already priced in. The stock may be fully priced even after the recent dip.

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Read more at Nasdaq: Intel Stock Plunges: Time To Buy the Dip?