Intel's Earnings Decline Triggers Stock Plunge
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: Fool
- Stock Performance: Intel's stock surged 135% over the past six months, significantly outperforming the semiconductor sector's 47% gain, reflecting a recovery in investor confidence; however, the latest earnings report reveals ongoing challenges in profitability.
- Earnings Report Data: Intel's Q4 2025 revenue fell 4% year-over-year to $13.7 billion, and while non-GAAP earnings rose 15% to $0.15 per share, this was below the market expectation of $0.06, leading to a 12% drop in after-hours trading.
- Supply Chain Issues: The company indicated that revenue from its data center and AI segments could have been significantly higher without supply shortages, with management noting that supply constraints will be most acute in Q1, but improvements are expected in Q2.
- Market Competition: Despite optimistic demand for Intel's AI chips, its trailing P/E ratio of 88 has led to investor panic over declining earnings, prompting analysts to recommend focusing on competitor Nvidia, which holds a dominant position in the AI chip market and has strong supply chain control that will drive long-term growth.
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Analyst Views on NVDA
Wall Street analysts forecast NVDA stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for NVDA is 264.97 USD with a low forecast of 200.00 USD and a high forecast of 352.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
41 Analyst Rating
39 Buy
1 Hold
1 Sell
Strong Buy
Current: 192.510
Low
200.00
Averages
264.97
High
352.00
Current: 192.510
Low
200.00
Averages
264.97
High
352.00
About NVDA
NVIDIA Corporation is a full-stack computing infrastructure company. The Company is engaged in accelerated computing to help solve the challenging computational problems. The Company’s segments include Compute & Networking and Graphics. The Compute & Networking segment includes its Data Center accelerated computing platforms and artificial intelligence (AI) solutions and software; networking; automotive platforms and autonomous and electric vehicle solutions; Jetson for robotics and other embedded platforms, and DGX Cloud computing services. The Graphics segment includes GeForce GPUs for gaming and PCs, the GeForce NOW game streaming service and related infrastructure, and solutions for gaming platforms; Quadro/NVIDIA RTX GPUs for enterprise workstation graphics; virtual GPU software for cloud-based visual and virtual computing; automotive platforms for infotainment systems, and Omniverse Enterprise software for building and operating industrial AI and digital twin applications.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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