Intel reported earnings per share of 15 cents (adjusted) against 8 cents expected and revenue of $13.7 billion versus $13.4 billion expected, indicating a beat on both metrics. However, the company's Q1 guidance for 2026 was significantly below expectations, causing the stock to drop 11% in after-hours trading to $48.26. The computer chip segment revenue declined quarter-over-quarter, but the AI chip segment showed reacceleration and operating margin expansion (from 23% to 26%). The Intel Foundry business remains unprofitable with negative 55.7% operating margins but is seen as a national security investment to bring chip manufacturing to the US. Intel recently sold $5.0 billion of common stock to NVIDIA to fund capital expenditures for scaling the foundry, which has led to diluted shares outstanding. Despite current valuation metrics appearing high (126x depressed earnings), the company is expected to become profitable, with EPS projected to reach $1.97 by 2028. Based on a 25x earnings multiple on 2028 EPS, a long-term target of $71 is calculated for 2030. The analyst, however, believes Intel is currently overvalued and would only consider buying at $35.50 per share to achieve a potential double.