While Nvidia’s (NVDA) price action is a case study for stocks going parabolic, the Jensen Huang-led company’s returns have been quite muted of late. Meanwhile, Intel (INTC), which was in the news not long ago for falling to multi-year lows, seems to have entered Nvidia’s orbit (sort of) and has been hitting multi-year highs.
After gaining 84% in 2025, the stock was up over 22% year-to-date (YTD) as of Friday’s closing prices. However, as typical after such rallies, Intel faced a reality check following the Q4 2025 confessional yesterday and is down in the double digits. So, does it make sense to buy the dip in INTC stock today, beginning with a snapshot of the once-iconic chipmaker’s Q4 earnings?
www.barchart.com
Intel’s Q4 earnings were a mixed bag. It reported revenues of $13.7 billion, which were ahead of the $13.4 billion that analysts were modeling. While Intel’s net losses widened to $591 million, compared to $126 million in the corresponding quarter last year, the adjusted earnings per share came in at $0.15, which was almost twice the $0.08 expected by analysts.
Meanwhile, Intel’s guidance spooked investors. The company expects to post revenues between $11.7 billion and $12.7 billion in the current quarter, whose midpoint was below Street estimates of $12.5 billion. Intel guided for a breakeven on adjusted earnings, which also fell short of the $0.05 that analysts were expecting.
The company attributed soft guidance to supply issues, which it expects to ease in the second quarter of the year. After the sharp rally – the stock was up nearly 109% over the 52-week period preceding the earnings – Intel needed a flawless report, the absence of which triggered the sell-off.
Meanwhile, thanks to the investments from Nvidia and Softbank (SFTBY), Mobileye (MBLY) stake monetization, and Altera stake sale to Silver Lake, Intel ended 2025 with cash and cash equivalents of $14.26 billion. While the capital raise and the U.S. government’s conversion of its debt to equity have bloated Intel’s outstanding share…
..
