Intel Corp. (INTC  ) reported mixed fourth-quarter results on Thursday, beating profit expectations but guiding for weaker near-term revenue and flat earnings, highlighting the uneven progress of its turnaround. Persistent supply constraints and margin pressure weighed on the outlook, prompting a sharp selloff in the stock. Intel posted revenue of $13.67 billion, ahead of the $13.37 billion consensus, while adjusted earnings reached 15 cents per share, surpassing expectations for eight cents. Revenue declined 4% year over year, with strength in Data Center and AI partially offsetting weakness in the Client Computing Group.

For the first quarter, Intel forecast revenue of $11.7 billion to $12.7 billion, below the $12.49 billion Street estimate, and guided for breakeven adjusted earnings, versus expectations for a modest profit.

Analysts Cite Supply Bottlenecks and Margin Pressure

Needham analyst N. Quinn Bolton maintained a Hold rating, noting Intel beat fourth-quarter expectations but guided below both his forecast and Wall Street's.

He said tight chip supply continues to cap shipment volumes, with supply constraints most acute on Intel 10 and 7, where much of the company's output sits.

Bolton said Intel guided adjusted gross margin to 34.5% at the midpoint, citing a less favorable product mix tilted toward Panther Lake, which dilutes corporate margins.

He expects the supply squeeze to trough in the first quarter and ease gradually, adding that Intel plans to prioritize wafer supply toward servers, making the revenue decline more pronounced in Client Computing than in Data Center and AI.

Benchmark analyst Cody Acree reiterated a Buy rating and raised his price forecast to $57 from $50, arguing the stock pullback followed a strong run and was driven by cautious guidance despite a solid quarter.

He described Intel as being in the middle of a major transition, pointing to the 18A process milestone and the early Core Ultra Series 3 launch as signs of improving execution.

Acree called 2026 a "prove-it year" for manufacturing efficiency, while flagging ongoing margin pressure from 18A ramps and component pricing.

JP Morgan analyst Harlan Sur maintained an Underweight rating and lifted his forecast to $35 from $30, saying weaker guidance reflects persistent internal wafer capacity limits, particularly on Intel 10 and 7.

He said gross margin guidance disappointed due to lower revenue and an unfavorable mix as Lunar Lake and Panther Lake remain margin dilutive.

Looking ahead, Sur said Intel is streamlining its server roadmap and accelerating product timing to slow share losses to Advanced Micro Devices, Inc. (AMD  ), while AI inference workloads continue to support demand for traditional server CPUs.

Sur added that JPMorgan's global team now expects PC shipments to decline about 9% next year, but demand in Data Center and AI should drive low- to mid-single-digit overall revenue growth for Intel this year.

INTC Price Action: Intel shares were down 15.70% at $45.78 at the time of publication on Friday, according to Benzinga Pro data.