Chipmaker Intel beats Q4 revenue estimates

Overview

• Semiconductor maker's Q4 revenue fell 4% yr/yr but beat analyst expectations

• Adjusted EPS for Q4 was $0.15, despite a GAAP loss per share

• Company introduced Intel 18A process technology, marking a key milestone

Outlook

• Intel forecasts Q1 2026 revenue of $11.7 bln to $12.7 bln

• Company expects Q1 2026 EPS of $(0.21) and non-GAAP EPS of $0.00

• Intel anticipates supply improvements post-Q1 2026

Result Drivers

• AI DEMAND - Strong demand for AI-related products contributed to Intel's Q4 performance, as noted by CEO Lip-Bu Tan

• SUPPLY SHORTAGES - Intel navigated industry-wide supply shortages, impacting Q4 results, according to CFO David Zinsner

• INTEL 18A TECHNOLOGY - Introduction of Intel 18A process technology marked a significant milestone, driving demand

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 8 "strong buy" or "buy", 33 "hold" and 5 "sell" or "strong sell"

• The average consensus recommendation for the semiconductors peer group is "buy."

• Wall Street's median 12-month price target for Intel Corp is $41.05, about 24.3% below its January 21 closing price of $54.25

• The stock recently traded at 93 times the next 12-month earnings vs. a P/E of 67 three months ago

Press Release: ID:nBw7p7c1ra

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