Even after the huge drop today, analysts are realizing that Intel's 4Q report was actually pretty good. Beat EPS estimates was in line with Revenue and was in line with Guidance. Not sure how that warrants this big drop and analysts agree. Both Deuthche Bank and Citi have kept their buy ratings with a price target of $26. This will be fine. Look for a correction in the coming days. Absolutely bizarre what is happening here. Remember what all the great investors have said (including Warren Buffett) buy when they are selling and sell when they are buying.
It warrants the big drop because the estimates were lowered so much already. Meeting them means they underperformed the year ago quarter by 25%. The stock had been run up in the days prior, having announced nothing other than what was expected, the stock should go back to where it was trading before being run up.
I can agree with you that earnings underperformed by 25% from Q4 last year, however this was already priced in. I think that where it is trading right now is an over reacting with heavy shorting. Believe me I am not saying this is going back to 22.60 in a week or two, but where it is, I see it heading back up, especially if Intel makes more of a shift to smartphones and tablets. People are also still buying tons of PCs. It is not as high as it was years ago but if they can start growing reveune from the tablet and smartphone market, Intel will rise this year. They beat Wall Street expectations for Q4 and should continue to do so.