Intel Stock Gains Pre-Market On Q4 Earnings Beat But Soft Guidance, AI Pivot Dampen Retail Sentiment

Intel Corp. (INTC) rose 1.4% in pre-market trading on Friday after a fourth-quarter earnings beat.

However, investor sentiment remained mixed as the chipmaker issued a weaker-than-expected revenue forecast for the first quarter of 2025.

The stock was the top trending ticker on Stocktwits early Friday, with retail investors divided over Intel’s near-term prospects. 

Intel reported Q4 earnings per share (EPS) of $0.13, slightly ahead of analysts’ expectations of $0.12, according to Koyin.

Revenue came in at $14.26 billion, exceeding Wall Street’s forecast of $13.81 billion but marking a 7% decline year-over-year. Full-year revenue fell 2% to $53.1 billion.

Management attributed the revenue upside to customers hedging against potential tariffs, making future demand uncertain.

Intel expects to break even in the first quarter of 2025, projecting revenue between $11.7 billion and $12.7 billion — below the consensus estimate of $12.4 billion on Koyfin.

JPMorgan analyst Harlan Sur lowered Intel’s price target from $26 to $23, maintaining an ‘Underweight’ rating. 

Sur noted that while Intel delivered a solid Q4, the company’s weak Q1 guidance reflects macroeconomic uncertainty, PC inventory digestion, and increasing competition.

Wells Fargo also cut its price target from $28 to $25, citing uncertainties around the delayed launch of Clearwater Forest, Intel’s next-generation data center chip, now pushed to early 2026.

The earnings report was Intel’s first since announcing the departure of CEO Pat Gelsinger. 

The company appointed finance chief David Zinsner and Intel Products CEO Michelle Johnston Holthaus as interim co-CEOs while it searches for a permanent replacement.

Intel Corp. Sentiment and Message Volume on Jan.31 as of 7:10 a.m. ET | Source: Stocktwits

On Stocktwits, retail sentiment around Intel was in the ‘neutral’ zone as chatter remained at ‘high’ levels. 

Many users were bullish on the company’s long-term performance given it had received $2.2 billion in federal grants under the U.S. CHIPS and Science Act – out of a total of $7.86 billion –  which aims to strengthen domestic semiconductor manufacturing. 

Zinsner said the Silicon Valley-based company received the first tranche of $1.1 billion in federal grants at the end of 2024 and an additional $1.1 billion in January 2025.

Management also reiterated plans to monetize a stake in Altera, its programmable chip business, to generate cash. 

Zinsner said Intel expects to provide an update on the potential sale by its next earnings call.

Other retail investors on Stocktwits were left unimpressed by the company’s earnings commentary, especially the part about scrapping plans for its Falcon Shore AI chips.

Intel said it is no longer planning to sell its Falcon Shores artificial intelligence processor for servers. Instead, it will use Falcon Shores as a test chip and focus on developing a new product, Jaguar Shores, to address AI data center demand more broadly.

Intel’s stock snapped a five-day losing streak on Wednesday, gaining 1.3% ahead of its earnings release. 

However, shares remain down over 54% year-over-year and have fallen more than 1% in January.

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