Should INTC Be in Your Portfolio Post Healthy Q4 Earnings?

From Nasdaq: 2025-02-07 09:22:00

Intel Corporation reported strong fourth-quarter 2024 results, beating earnings and revenue estimates. Margins were impacted by cost-cutting initiatives, but growth opportunities are on the horizon with a strong product roadmap. The company remains focused on its core strategy while emphasizing operational goals to establish itself as a leading foundry.

Intel saw healthy traction in AI PCs and is set to launch new chips based on Intel 18A. However, the company faces challenges from competitors like NVIDIA, which are outpacing Intel in innovation. Margins were affected by production shifts and price-sensitive competition. Geopolitical tensions also pose a threat to chip supply.

Earnings estimates for Intel have declined for 2025 and 2026, reflecting bearish sentiments. Despite promising AI solutions, Intel’s recent product launches may be insufficient. Margin woes, geopolitical risks, and declining earnings estimates have led to negative investor perception. With a Zacks Rank #3, caution is advised when trading Intel stock.

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