Intel Shares Plunge. Is It Time to Buy the Dip?

After a blistery commencement to 2026, shares of Intel (NASDAQ: INTC) plunged connected quality that the semiconductor institution issued anemic guidance successful its latest net report. The banal is inactive trading up astir 19% successful 2026 and has much than doubled implicit the past year, arsenic of this writing.

Let's instrumentality a person look astatine its net study and prospects to spot if semipermanent investors should see buying this caller dip.

Where to put $1,000 close now? Our expert squad conscionable revealed what they judge are the 10 champion stocks to bargain close now, erstwhile you articulation Stock Advisor. See the stocks »

For its 4th quarter, Intel erstwhile again struggled with some gross maturation and anemic gross margins. Its Q4 gross fell 4% twelvemonth implicit twelvemonth from $14.3 cardinal to $13.7 billion. Its merchandise gross edged down 1% to $12.9 billion. Within merchandise revenue, its lawsuit computing radical (CCG) merchandise gross dropped 7% twelvemonth implicit twelvemonth to $8.2 billion, portion information halfway and AI (DCAI) merchandise gross climbed 9% to $4.7 billion.

Its foundry business, meanwhile, saw gross emergence 4% to $4.5 billion. However, the conception continues to station ample losses, with an operating nonaccomplishment of $2.5 cardinal successful the 4th and $10.3 cardinal for the year. Revenue from Intel's different businesses sank 48% twelvemonth implicit twelvemonth to $0.6 billion, mostly owed to the merchantability of 51% of its Altera subsidiary.

Data source: Intel. YOY = twelvemonth implicit year.

Gross borderline remained nether pressure, dropping by 310 ground points from 39.2% to 36.1%, portion adjusted gross margins sank 420 ground points to 37.9%.

Looking ahead, the institution projected Q1 gross to beryllium betwixt $11.7 cardinal and $12.7 cardinal with breakeven adjusted EPS. The $12.2 cardinal gross midpoint and EPS were beneath the $0.05 successful EPS and $12.5 cardinal successful income that analysts were expecting, according to LSEG. Adjusted gross margins were projected to stay weak, coming successful astir 34.5%. The institution cited proviso constraints for its airy forecast.

Despite the post-earnings dip, Intel shares person risen sharply implicit the past year. The banal is nary longer connected the heavy discount rack, and present it becomes overmuch much astir execution.

The institution continues to stake large connected its struggling foundry business, and said it was seeing beardown request for its 18A technology. Meanwhile, it said it would commencement spending much successful superior expenditure (capex) connected its newest 14A exertion erstwhile it locked successful customers. It is expecting lawsuit decisions successful the 2nd fractional and into aboriginal 2027. While Intel said it was making progress, determination person been immoderate caller reports of the institution continuing to acquisition output issues, and the concern continues to suffer money.