Intel (INTC) stock plummeted 17% after beating Q4 earnings but issuing weak guidance for Q1. CEO Lip-Bu Tan warned of a slow turnaround due to supply constraints. Despite recent investments, analysts doubt Intel’s future. Margins are below 40%, with challenges in AI and foundry opportunities. Stock return over 100% in the last year.

Intel faces inventory challenges and shifting focus to data center customers over PC makers. Q1 revenue projections are lower for client computing than servers. Gross margins decreased to 34.5% due to lower revenue, increased production volumes, and shift toward lower-margin server chips. Management expects supply constraints to ease in 2026 with increased wafer starts.

CEO Tan emphasized yield improvements to address supply shortages. Intel’s stock has various analyst recommendations, with a price target of $41 below the current $45 price. Aditya Raghunath did not have positions in the mentioned securities. Information is for informational purposes only.

Read more at Yahoo Finance: Wall Street Sours on Intel After Q4 Earnings. Should You Buy the Dip or Stay Far, Far Away?