Intel’s stock fell sharply on Friday, dropping more than 16% in early trading, marking its largest intraday decline since 2020.
The decline came despite Intel reporting fourth-quarter revenue of $52.8 billion and earnings per share of $0.42, slightly above Wall Street expectations. Analysts had predicted $52.6 billion in revenue and $0.34 per share.
Investors reacted to Intel’s warning that first-quarter revenue could fall between $11.7 billion and $12.7 billion, with earnings expected to break even. These projections were below analysts’ earlier estimates of $12.5 billion and $0.05 per share.
CEO Lip-Bu Tan said during an earnings call that production was “not up to my standards” despite strong demand, and described the company’s turnaround as a “multiyear journey” requiring “time and resolve.”
Bernstein analysts said Intel appeared to have “woefully misjudged” demand, leaving the company “caught massively off guard.”
The stock has more than doubled over the past year, aided by investments from SoftBank, Nvidia, and a 10% stake acquired by the U.S. government under the Trump administration. The federal stake, worth $8.9 billion initially, is now estimated at $20.4 billion.
Friday’s losses contributed to declines across tech stocks on the Nasdaq, including Broadcom, Charter Communications, Tesla, Qualcomm, and Marvell Technology.
