<p>After a hot start to 2026, shares of <strong>Intel</strong> <span class="ticker-mention inline-flex items-center font-bold">(INTC <span class="ml-1 text-green-900">+11.04%</span>)</span> plunged on news that the semiconductor company issued weak guidance in its latest earnings report. The stock is still trading up around 19% in 2026 and has more than doubled over the past year, as of this writing.</p>
<p>Let's take a closer look at its earnings report and prospects to see if long-term investors should consider buying this recent dip.</p>
<div><img alt="Artist rendering of a microchip." width="880" height="564" src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-b3A9cmVzaXplJnVybD1odHRwczovL2cuZm9vbGNkbi5jb20vZWRpdG9yaWFsL2ltYWdlcy84NTMyMjAvbWljcm9jaGlwLXRlY2hub2xvZ3ktY29tcHV0ZXItY2hpcC1kYXRhLXByb2Nlc3NpbmcuanBnJnc9Mzg0MA?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" original-src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-b3A9cmVzaXplJnVybD1odHRwczovL2cuZm9vbGNkbi5jb20vZWRpdG9yaWFsL2ltYWdlcy84NTMyMjAvbWljcm9jaGlwLXRlY2hub2xvZ3ktY29tcHV0ZXItY2hpcC1kYXRhLXByb2Nlc3NpbmcuanBnJnc9Mzg0MA"/>
<p>Image source: Getty Images</p>
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<h2>Looking for a turnaround</h2>
<p>For its fourth quarter, Intel once again struggled with both revenue growth and weak gross margins. Its Q4 revenue fell 4% year over year from $14.3 billion to $13.7 billion. Its product revenue edged down 1% to $12.9 billion. Within product revenue, its client computing group (CCG) product revenue dropped 7% year over year to $8.2 billion, while data center and AI (DCAI) product revenue climbed 9% to $4.7 billion. </p>
<p>Its foundry business, meanwhile, saw revenue rise 4% to $4.5 billion. However, the segment continues to post large losses, with an operating loss of $2.5 billion in the quarter and $10.3 billion for the year. Revenue from Intel's other businesses sank 48% year over year to $0.6 billion, largely due to the sale of 51% of its Altera subsidiary.</p><div><div id="foolcom_sidebar_top_container"></div></div>
<div><table><thead><tr><th>
<p><strong>Intel Segment</strong></p>
</th><th>
<p><strong>Q4 Revenue</strong></p>
</th><th>
<p><strong>Q4 Revenue Growth (YOY)</strong></p>
</th></tr></thead><tbody><tr><td>
<p>Product (CCG &amp; DCAI)</p>
</td><td>
<p>$12.9 billion</p>
</td><td>
<p>(1%)</p>
</td></tr><tr><td>
<p>CCG</p>
</td><td>
<p>$8.2 billion</p>
</td><td>
<p>(7%)</p>
</td></tr><tr><td>
<p>DCAI</p>
</td><td>
<p>$4.7 billion</p>
</td><td>
<p>9%</p>
</td></tr><tr><td>
<p>Foundry</p>
</td><td>
<p>$4.5 billion</p>
</td><td>
<p>4%</p>
</td></tr><tr><td>
<p>Other (subsidiaries)</p>
</td><td>
<p>$0.6 billion</p>
</td><td>
<p>(48%)</p>
</td></tr></tbody></table></div>
<p>Data source: Intel. YOY = year over year.</p>
<p>Gross margin remained under pressure, dropping by 310 basis points from 39.2% to 36.1%, while adjusted gross margins sank 420 basis points to 37.9%.</p><div><div><div><div></div></div></div></div>
<p>Looking ahead, the company projected Q1 revenue to be between $11.7 billion and $12.7 billion with breakeven adjusted EPS. The $12.2 billion revenue midpoint and EPS were below the $0.05 in EPS and $12.5 billion in sales that analysts were expecting, according to <strong>LSEG</strong>. Adjusted gross margins were projected to remain weak, coming in around 34.5%. The company cited supply constraints for its light forecast. </p><div><div id="in_line_article_pitch_container"></div></div>
<section><div><div><div><small><div>Expand</div></small></div><div><img alt="Intel Stock Quote" width="64" height="64" src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-b3A9cmVzaXplJnVybD1odHRwczovL2cuZm9vbGNkbi5jb20vYXJ0L2NvbXBhbnlsb2dvcy9tYXJrL0lOVEMucG5nJnc9MTI4?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" original-src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-b3A9cmVzaXplJnVybD1odHRwczovL2cuZm9vbGNkbi5jb20vYXJ0L2NvbXBhbnlsb2dvcy9tYXJrL0lOVEMucG5nJnc9MTI4"/></div><div><h2>NASDAQ: INTC</h2><div>Intel</div></div></div><div><div><div>Today's Change</div><div>(11.04%) $4.85</div><div>Current Price</div><div>$48.78</div></div><div></div></div></div><div><div></div><div><h3>Key Data Points</h3><div><div>Market Cap</div><div>$244B</div><div>Day's Range</div><div>$46.32 - $49.28</div><div>52wk Range</div><div>$17.66 - $54.60</div><div>Volume</div><div>3.7M</div><div>Avg Vol</div><div>98M</div><div>Gross Margin</div><div>34.77%</div></div></div></div></section>
<h2>Is it time to buy the dip?</h2>
<p>Despite the post-earnings dip, Intel shares have risen sharply over the past year. The stock is no longer on the deep discount rack, and now it becomes much more about execution.</p>
<p>The company continues to bet big on its struggling foundry business, and said it was seeing strong demand for its 18A technology. Meanwhile, it said it would start spending more in capital expenditure (capex) on its newest 14A technology once it locked in customers. It is expecting customer decisions in the second half and into early 2027. While Intel said it was making progress, there have been some recent reports of the company continuing to experience yield issues, and the business continues to lose money. </p>
<p>Although the company is seeing some momentum in its data center artificial intelligence (AI) business, both its revenue and revenue growth here are still modest compared to competitors. As a show-me stock that has doubled over the last year, Intel has a lot to prove. As such, I'd remain on the sidelines and not buy the dip.</p><div id="article_pitch_container"></div><div id="promobox_container"></div>

On October 26th, after the U.S. stock market closed, chip giant Intel released its Q3 2023 financial report. The report showed that Intel's total revenue in the third quarter fell 8% year-on-year to $14.16 billion, marking the seventh consecutive quarter of declining sales, although it was still higher than the market expectation of $13.53 billion. In the second quarter, revenue had previously dropped 15% year-on-year, and the company expects revenue to return to growth in the fourth quarter. However, the sales of the Network and Edge Group (NEX), which includes IoT and other segments, fell 32% year-on-year to $1.5 billion. More importantly, the server chip division, named "Data Center and Artificial Intelligence," has yet to recover growth, with third-quarter revenue declining 10% year-on-year to $3.8 billion. Facing multiple competitive pressures, do you think Intel can turn the tide in the AI era?

<p><span style="background-color:rgb(255,255,255);color:rgba(0,0,0,0.9);">On October 26th, after the U.S. stock market closed, chip giant Intel released its Q3 2023 financial report. The report showed that Intel's total revenue in the third quarter fell 8% year-on-year to $14.16 billion, marking the seventh consecutive quarter of declining sales, although it was still higher than the market expectation of $13.53 billion. In the second quarter, revenue had previously dropped 15% year-on-year, and the company expects revenue to return to growth in the fourth quarter.</span></p><p> </p><p style="margin-left:0px;"><span style="background-color:rgb(255,255,255);color:rgba(0,0,0,0.9);">However, the sales of the Network and Edge Group (NEX), which includes IoT and other segments, fell 32% year-on-year to $1.5 billion.</span> More importantly, the server chip division, named "Data Center and Artificial Intelligence," has yet to recover growth<span style="background-color:rgb(255,255,255);color:rgba(0,0,0,0.9);">, with third-quarter revenue declining 10% year-on-year to $3.8 billion.</span></p><p style="margin-left:0px;"> </p><p style="margin-left:0px;"><span style="background-color:rgb(255,255,255);color:rgba(0,0,0,0.9);">Facing multiple competitive pressures, do you think Intel can turn the tide in the AI era?</span></p>

In the AI era, can Intel win a comeback?

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<p>Intel shares fell sharply after the company issued weak guidance in its latest earnings report, despite a 19% increase in 2026 and more than doubling over the past year. Q4 revenue dropped 4% year-over-year to $13.7 billion, with significant losses in its foundry business. The company projected Q1 revenue between $11.7 billion and $12.7 billion, below analyst expectations. While there is potential in its AI business, challenges remain, leading analysts to advise caution on buying the dip.</p>

- Intel shares fell sharply after the company issued weak revenue guidance in its latest earnings report, despite a notable 19% increase in 2026 and doubling over the past year.  
- The fourth quarter saw revenue decline by 4% year over year, with significant drops in client computing revenue, although data center and AI product revenue showed some growth.  
- Analysts have low expectations for the upcoming quarter, and despite strong demand for new technologies, Intel must address ongoing profitability challenges, leading to a cautious outlook on purchasing shares.

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