ETFs to Buy as Intel Plunges 17% Despite Q4 Earnings Beat

Shares of Intel Corp. INTC plummeted 17% on Jan. 23, 2026, following its fourth-quarter 2025 earnings release. Despite a comfortable “beat” on both the top and bottom lines, a disappointing outlook for the first quarter of 2026 is likely to have sent investors rushing for the exits.For long-term bulls, this pullback may represent a strategic entry point into Intel’s evolving story, led by the ramp-up of its Xeon 6 server processors and its burgeoning AI accelerator pipeline, fueled by data center expansion. However, for those wary of Intel's near-term execution hurdles, a single-stock play may feel too aggressive. A more prudent approach in this situation to capture Intel’s growth yet stay cushioned from its volatility is through Exchange-Traded Funds (ETFs). This way, one can get a diversified gateway to the broader chip sector as well as leaders from other industries, balancing Intel’s potential upside with the stability of its peers.Before suggesting Intel-heavy ETFs for your portfolio, let us take a sneak peek at how Intel performed in the fourth quarter, in terms of other metrics.A Brief Analysis of INTC’s Q4 ResultsIntel reported adjusted earnings of 15 cents per share, which surpassed the Zacks Consensus Estimate by 87.5%. The figure also marked a 15.4% improvement from its year-ago quarter’s reported figure. Revenues of $13.67 billion also beat the consensus estimate by 2.3% and were up 4.1% year over year. As per the company, its businesses benefited from the AI infrastructure build-out with AI PC, traditional server, and networking revenues all recording double-digit growth on a year-over-year basis. Its adjusted gross margin, despite beating the company’s expectation, went down 420 basis points year over year, owing to the early ramp of Intel 18A to support the launch of INTC’s Core Ultra Series 3 microprocessor, codenamed Panther Lake.In terms of outlook, Intel announced soft revenue guidance for the first quarter of 2026, which reflects a year-over-year decline, citing acute internal supply constraints as the major reason. Within Intel Products, the company expects a more pronounced revenue decline in its Client Computing Group (CCG) in the first quarter than in Datacenter and AI Group (DCAI) as it continues to prioritize internal supply to its server end markets. INTC expects its factory network to improve available supply beginning in the second quarter and in each of the remaining quarters in 2026, which should help it achieve the positive adjusted free cash flow by 2026-end (as cited on Intel’s fourth-quarter earnings call).Analysts’ ReactionFollowing Intel’s fourth-quarter results, Stifel raised its price target on the company’s stock to $42.00 from $35.00 on Jan. 23, while maintaining a Hold rating (as cited in Investing.com). According to Stifel, Intel is currently operating at near-full manufacturing capacity. However, the firm sees a path to organic growth through better pricing, product mix and improved yields—all without the need for additional capital spending. While the first quarter of 2026 is expected to be a fundamental low point, analysts at Stifel project a recovery in gross margins toward 40% by mid-2027. This rebound hinges on the maturation of the 18A process technology, which would represent a major leap from Intel’s current margin.Intel-Heavy ETFs to BuyFirst Trust NASDAQ Semiconductor ETF FTXL This fund, with net assets worth $1.55 billion, provides exposure to 31 U.S. semiconductor companies. Of these, Intel takes the second spot, accounting for a 9.55% share.FTXL has gained 15.8% year to date and charges 60 basis points (bps) in fees. The fund holds a Zacks Rank #2 (Buy). Pacer Data and Digital Revolution ETF TRFKThis is an actively managed ETF with assets worth $422.8 million, providing exposure to 87 large -cap companies driving transmission, manipulation, storage and use of data. Of these, Intel takes the sixth spot, accounting for a 5.49% share.TRFK has gained 1.2% year to date and charges 49 bps in fees.  The fund holds a Zacks Rank #2.iShares MSCI USA Value Factor ETF VLUE This fund, with net assets worth $9.32 billion, provides exposure to 149 large and mid-cap U.S. stocks. Of these, Intel takes the second spot, accounting for a 5.06% share.VLUE has risen 6.1% year to date and charges 15 bps in fees. The fund has a Zacks Rank #2. VanEck Semiconductor ETF SMHThis is an actively managed fund, with net assets worth $76.6 million, which tracks the most liquid companies in the industry based on market capitalization and trading volume. Of these, Intel takes the tenth spot, accounting for a 4.64% share.SMH has soared 11.1% year to date and charges 35 bps in fees. The fund sports a Zacks Rank #1 (Strong Buy). Boost Your Portfolio with Our Top ETF InsightsZacks' exclusive Fund Newsletter delivers actionable information, top news and analysis, as well as top-performing ETFs, straight to your inbox every week.Don’t miss out on this valuable resource. It’s free!Get it now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Intel Corporation (INTC): Free Stock Analysis Report VanEck Semiconductor ETF (SMH): ETF Research Reports iShares MSCI USA Value Factor ETF (VLUE): ETF Research Reports First Trust NASDAQ Semiconductor ETF (FTXL): ETF Research Reports Pacer Data and Digital Revolution ETF (TRFK): ETF Research ReportsThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks