Intel Corporation (NASDAQ: INTC) stock fell over 8.6% on 22^nd Jan, 2021 (as of 10:40 am GMT-5; Source: Google finance) post lower than expected results for the fourth quarter of FY 20. IOTG revenue was down 16% year over year, due to COVID effects on demand. The gross margin for the quarter was 58.4%, due to flow through on higher revenue, and the benefit of Ice Lake server achieving production qualification prior to year-end. In Q4, DCG delivered revenue of $6.1 billion, which represents decline of 16% year over year driven by enterprise and government weakness, and cloud digestion.

The company had qualified several new products in the fourth quarter, and INTC have an incredibly exciting lineup of CPUs for ’21 and ’22. Recently at CES, the company had introduced more than 50 processors resulting in more than 500 new designs for laptops and desktops coming to market in 2021. The company is also seeing tremendous market response for PCs based on the new 11th Gen Intel Core Tiger Lake Processors. The company has gained market share as PCs, CPU units grew an impressive 33% in the quarter. In data center, the company is now shipping the first 10-nanometer based Xeon Scalable CPU Ice Lake and will be ramping volume through the first quarter. Further, the company had a big XPU leap in the fourth quarter as the company has entered the discrete graphics market with Intel Iris Xe MAX graphics, Intel’s first Xe-based discrete GPU. The company is now shipping discrete graphics into thin and light notebooks from Acer, Asus, and Dell, and the company has introduced the first discrete GPU for the data center. In 2020, the company has expanded the footprint into the Radio Access Network delivering Xeon SoCs, FPGAs, and custom solutions for 5G base station designs and reaching the goal of 40% share, two years ahead of the original target.

INTC in the fourth quarter of FY 20 has reported the adjusted earnings per share of $1.52, while reported 1.1 percent fall in the adjusted revenue to $19.98 billion in the fourth quarter of FY 20. The data center group generated record revenue in 2020, which is up 11% year over year

Additionally, the company had repurchased approximately $17.6 billion shares as part of planned $20 billion share repurchases announced in October 2019. The company plans to complete the remaining $2.4 billion balance in Q1 ’21.