Nvidia’s stock has been soaring while Intel’s has been struggling, with Intel experiencing a recent rally but facing a reality check after Q4 earnings. Intel reported revenues of $13.7 billion and an adjusted EPS of $0.15, but its guidance fell short of expectations due to supply issues. The company ended 2025 with $14.26 billion in cash.

Despite its challenges, Intel is investing in the foundry business and ASIC growth, with a TAM of $100 billion. The company also unveiled Panther Lake processors and is focusing on AI PCs. While Intel’s valuation may seem high, CEO Lip-Bu Tan sees a massive market opportunity for the company but acknowledges the need for improved execution.

Investors are cautious about buying the dip in Intel stock, as much of the expected growth may already be factored into the prices. While Intel is working on a turnaround strategy, there are concerns about the company’s execution. Overall, while there may be potential for long-term earnings revival, caution is advised when considering Intel stock.

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