Intel’s Earnings Guidance Triggers Stock Drop
Intel Corporation (NASDAQ: INTC) reported its Q4 2025 results on January 22, revealing a 4% year-over-year revenue decline to $13.7 billion. Despite a 15% increase in non-GAAP earnings per share to $0.15, a disappointing guidance for break-even earnings in the current quarter led to a 12% drop in aftermarket trading. The company cited supply shortages, particularly affecting its Data Center and AI segment, as a major factor contributing to these issues.
Intel expects supply constraints to peak in Q1 2026 but anticipates improvements starting in Q2. The company’s current valuation stands at 88 times trailing earnings and 85 times forward earnings, raising concerns among investors about its ability to capitalize on semiconductor market demand amidst ongoing supply issues.
