Why is Intel Corporation stock underperforming the market?

Intel Corporation's fourth-quarter financial results exceeded analyst expectations, with an earnings per share (EPS) of $0.13, surpassing the consensus estimate of $0.12, and revenue of $14.3 billion, higher than the expected $13.81 billion. However, this was a decline from the previous year's $15.4 billion. The Client Computing Group (CCG) and Data Center and AI (DCAI) segments saw revenue declines of 9% and 3%, respectively, while Network and Edge (NEX) revenue grew by 10%. Intel Foundry revenue fell by 13%. Despite these mixed results, Intel's cautious outlook for the next quarter includes projected revenue between $11.7 billion to $12.7 billion and zero earnings per share, which is below analyst expectations. Intel is currently navigating challenges such as market share losses to Advanced Micro Devices (AMD) and struggles in the AI sector. The company is under the interim leadership of co-CEOs David Zinsner and Michelle Johnston Holthaus, following the retirement of former CEO Pat Gelsinger. Intel is focusing on strengthening its product portfolio and driving operational efficiency, aiming for positive free cash flow by 2025. Analysts have mixed views, with some maintaining neutral or hold ratings due to slow recovery and reduced guidance, while others have lowered price targets due to concerns over Intel's market position and future prospects. The company's recent performance highlights the competitive market environment and the strategic adjustments needed to improve its financial results and outlook.