Intel Reports A Strong 2014; Though Weak Gross Margin Outlook Disappoints Investors

Despite the strong results, Intel's stock was down marginally after the 2014 earnings release, on account of the weak gross margin guidance. For Q1 2015, Intel expects gross margin to decline to 60% (+/- a couple of points). The drastic decline is primarily driven by higher platform unit costs on 14 nanometer products, higher factory start-up costs and lower platform volumes. However, Intel expects its gross margin to increase in the second half of the year. As 14-nanometer becomes a larger mix ...