Intel’s Stock Plummets on Weak Q1 Forecast Despite Q4 Beat
Intel shares tumbled 6% after issuing a disappointing Q1 revenue and profit forecast, overshadowing its stronger-than-expected Q4 results. The chipmaker reported adjusted earnings of 15 cents per share on $13.7 billion revenue for Q4, surpassing Wall Street estimates of 8 cents and $13.4 billion. However, guidance of breakeven EPS and $11.7-$12.7 billion revenue for Q1 fell short of analyst expectations.
The company posted a $600 million net loss for the quarter, significantly wider than the $100 million loss a year earlier. Investor Optimism around Intel's foundry business appears to be fading despite CEO Lip-Bu Tan's claims of 18A manufacturing technology "over-delivering" last year. The stock had surged 147% in the past year on hopes of securing major foundry clients.
