Intel shares face mounting pressure following disappointing Q1 2026 guidance and persistent foundry challenges. The foundry segment reported a $2.5 billion operating loss. This deficit stems from the early Intel 18A ramp where yields fell below internal targets. Earnings estimates for 2025 have declined 15.25% over the last 60 days. Estimates for 2026 dropped 14.04% during the same period. Q1 guidance projects $0.00 EPS despite a forward P/E ratio of 101x.
Analyst sentiment has shifted to a consensus Reduce rating. Only 9 of 47 analysts currently rate Intel as a Buy or Strong Buy. By comparison, 41 of 53 analysts maintain Buy ratings for competitor AMD. Supply constraints continue to limit Intel's revenue growth. Competition is also intensifying across the server, storage, and networking markets.
Intel stock declined 7.5% during the week of February 10-14. The broader semiconductor sector rallied 1.76% during that same timeframe. This divergence underscores Intel’s significant market underperformance.