Intel’s stock has recently faced significant volatility following the release of its fourth-quarter earnings report for 2025. After enjoying a remarkable **84% gain in 2025**, Intel (INTC) saw its shares rise over **22% year-to-date** before this reality check. The reaction to its earnings report sent the stock tumbling into the double digits, prompting investors to weigh whether this dip presents a buying opportunity.
The company’s fourth-quarter results revealed a mixed performance. Intel reported revenues of **$13.7 billion**, exceeding analysts’ expectations of **$13.4 billion**. However, the net losses widened to **$591 million**, compared to **$126 million** in the same quarter the previous year. Adjusted earnings per share came in at **$0.15**, outperforming the **$0.08** anticipated by market analysts.
Yet, the outlook provided by Intel unnerved investors. The company guided for revenues between **$11.7 billion and $12.7 billion** for the current quarter, with the midpoint falling short of market estimates of **$12.5 billion**. Additionally, Intel projected breakeven adjusted earnings, which was below the expected **$0.05**. The company attributed this cautious guidance to ongoing supply chain issues, although it expects conditions to improve by the second quarter of 2026.
After a **109% surge** over the past year leading up to the earnings announcement, Intel required a flawless report to maintain momentum. The absence of such a report triggered a sell-off, reflecting the market’s sensitivity to the company’s performance.
On a more positive note, Intel ended 2025 with **$14.26 billion** in cash and cash equivalents, bolstered by investments from **Nvidia** and **Softbank**, as well as the monetization of its stake in **Mobileye** and the sale of its **Altera** stake to **Silver Lake**. While the capital raise and the U.S. government’s conversion of its debt to equity have increased Intel’s outstanding shares, they have also provided much-needed liquidity.
Despite these challenges, Intel is striving for a turnaround. The company is heavily investing in its foundry business, although major partnership announcements have yet to materialize. There are expectations that Intel may secure significant customers, with rumors suggesting that **Apple** is among the companies in discussions with Intel.
Intel is also focusing on custom Application-Specific Integrated Circuits (ASICs), which currently run at an annualized rate of **$1 billion**. The company estimates the total addressable market for ASICs to be **$100 billion**. At the recently held **CES 2026**, Intel introduced its **Panther Lake processors**, built on its **18A process node**, which received positive feedback from the market.
The demand for Central Processing Units (CPUs) in the AI ecosystem is another critical driver for Intel’s stock. However, valuing Intel remains complex, with its shares trading at a forward price-to-earnings (P/E) multiple of **282x** and a P/E-to-growth (PEG) multiple of **28.57x**. After briefly falling below **1x book value**, Intel now trades at approximately **twice** its book value.
The narrative surrounding Intel is increasingly focused on a long-term recovery in earnings. CEO **Lip-Bu Tan** emphasized the expansive market opportunities for the company during the Q4 earnings call, stating, “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.” Despite this optimistic outlook, Tan acknowledged that Intel’s execution must continue to improve.
While some investors may consider purchasing Intel stock at its current dip, caution is advised. Much of the anticipated growth and operational improvements appear to be reflected in the current share price. Investors are encouraged to carefully assess Intel’s trajectory as the company seeks to navigate its challenges and capitalize on emerging opportunities in the technology sector.
