Intel’s stock has experienced significant fluctuations following its recent earnings report for the fourth quarter of 2025. After a remarkable rise of 84% in 2025, the company’s shares soared by over 22% year-to-date as of the latest closing prices. Yet, following the earnings announcement, Intel’s stock faced a sharp decline, prompting investors to reconsider whether it is prudent to buy the dip.
The tech giant reported revenues of $13.7 billion, surpassing analyst expectations of $13.4 billion. However, the company’s net losses widened to $591 million, compared to $126 million in the same quarter last year. Intel’s adjusted earnings per share came in at $0.15, significantly higher than the $0.08 that analysts had anticipated.
Despite this, Intel’s guidance for the upcoming quarter has raised concerns among investors. The company forecasted revenues between $11.7 billion and $12.7 billion, with the midpoint falling below the anticipated $12.5 billion. Additionally, Intel projected breakeven adjusted earnings, which fell short of the expected $0.05. The company attributed its cautious outlook to ongoing supply chain issues, which it hopes will improve by the second quarter of the year.
After a remarkable 109% increase over the previous 52-week period, Intel’s stock required a flawless earnings report to maintain momentum. The absence of such a report led to the sell-off, highlighting the volatility often associated with significant market gains.
Despite these challenges, Intel’s financial position remains robust, thanks in part to investments from Nvidia and SoftBank, as well as monetization of its stake in Mobileye and the sale of its Altera stake to Silver Lake. By the end of 2025, Intel held cash and equivalents amounting to $14.26 billion. While the capital raise and the U.S. government’s conversion of debt to equity have increased Intel’s outstanding shares, they have also significantly bolstered the company’s cash reserves.
Intel’s current standing is a far cry from its historical dominance in the chip market. The company is focused on a turnaround strategy, particularly in the foundry business. Although major partnership announcements have yet to materialize, there are expectations for significant customer acquisitions in the latter half of the year. Notably, Apple is rumored to be in discussions with Intel regarding potential collaborations.
Another promising area for Intel is its Custom Application-Specific Integrated Circuit (ASIC) division, which has reached an annualized run rate of $1 billion. The total addressable market for this segment is estimated at $100 billion. At the recent CES 2026, Intel unveiled its new Panther Lake processors, constructed on its 18A process node, receiving positive feedback from industry stakeholders.
The increasing demand for artificial intelligence (AI) applications is another vital factor influencing Intel’s stock. Central Processing Units (CPUs), traditionally the company’s focus, are becoming essential in the AI ecosystem. As the demand for AI-capable PCs rises, Intel stands to benefit significantly.
Valuing Intel remains complex, as its shares are currently trading at a forward price-to-earnings (P/E) multiple of 282x and a P/E-to-growth (PEG) multiple of 28.57x. Despite briefly dipping below 1x its book value, Intel’s stock now trades at approximately twice its book value, suggesting a recovery in investor confidence.
The outlook for Intel is inherently tied to the company’s ability to reinvigorate its earnings. During the Q4 earnings call, CEO Lip-Bu Tan emphasized the vast market opportunities available to Intel. He stated, “The breadth of our IP and know-how across silicon design, system level integration, wafer manufacturing and advanced packaging uniquely position us to capitalize on these AI-driven trends.” Nonetheless, Tan acknowledged that Intel’s execution remains a critical area for improvement.
While there may be reasons for cautious optimism regarding Intel’s future, potential investors should carefully consider the current market dynamics. While the stock may not be a sell-off candidate, the wisdom of buying the dip in INTC stock is debatable, as much of the anticipated growth appears to be reflected in current pricing.
