Intel warns of challenges ahead, analysts focus on supply and margin pressures, 18A projected as a key variable.

Intel's latest financial report and guidance disappointed the market, causing its stock price to plummet. On Friday, Intel's stock price dropped nearly 16% at one point. The company's quarterly guidance was weaker than expected, and ongoing supply constraints continued to weigh on gross margin performance, putting pressure on investor sentiment. Several analysts noted that the first-quarter guidance was "unimpressive." Analysts at APAC Investment News said that after Intel's stock price rapidly rose in the previous months, its valuation appeared to be high; although technical execution remains key to the company's long-term trajectory, in the current backdrop of chip shortages, the short-term environment may be more challenging, and the road ahead may still be bumpy. Citigroup stated in an investor report that Intel needs to improve yield at all process nodes, making it difficult for gross margin to return to above 40% in the short term; however, pricing for server CPUs is expected to increase. Citigroup maintained a "neutral" rating and slightly lowered its target price from $50 to $48. Wedbush also pointed out that prior to the financial report, Intel's stock price corresponded to a high valuation of nearly 50 times the 2027 consensus EPS. Although the progress on 18A/Panther Lake is a positive signal, its substantial improvement to long-term EPS and profit margin trajectory is still difficult to quantify. Wedbush reiterated a "neutral" rating and a $30 target price, believing that the current valuation is difficult to be fully supported by fundamentals.