Intel (NASDAQ: INTC ) reported fourth-quarter earnings and full year earnings on Jan. 16. Shares sold off harshly, punishing Intel for missing bottom-line estimates. However, is that what investors should be concerned about from this chipmaking giant?
In this video, Tech and Telecom analyst Jamal Carnette argues that Intel's quarter wasn't as bad as Mr. Market's reaction. Some of this is due to Intel's large run up over the last three months. Recently, analysts and investors had turned bullish, with some comparing Intel's story to 2013's tech darling: Hewlett-Packard. From a fundamental basis, Intel performed well in the PC end markets, but experienced weakness in the data center. All told, Intel beat top-line estimates, but fell short on EPS projections.
While some of Intel's sell-off can be attributed by short-term, irrational investors, one thing should concern Intel investors in the long term: mobile. Although Intel has an audacious goal on being in 40 million tablets in 2014, investors should be concerned about execution risk here.
More compelling ideas from the Motley Fool
Opportunities to get wealthy from a single investment don't come around often, but they do exist, and our chief technology officer believes he's found one. In this free report, Jeremy Phillips shares the single company that he believes could transform not only your portfolio, but your entire life. To learn the identity of this stock for free and see why Jeremy is putting more than $100,000 of his own money into it, all you have to do is click here now.