Intel, the world's largest semiconductor company, saw its shares plummet by more than 11% on Friday following its outlook for the first quarter of 2024 that fell short of analyst forecasts. Although the company reported impressive results for the latest quarter, investors were disappointed by the cautious guidance for the upcoming quarter.

For the first quarter of fiscal 2024, Intel expects adjusted earnings per share of 13 cents on sales ranging between $12.2 billion and $13.2 billion. This projection fell short of the CNBC-reported analyst forecast of 33 cents per share on $14.15 billion in revenue. The company also anticipates a GAAP net loss of 25 cents per share for the same period.

During a discussion with analysts, Intel CEO Pat Gelsinger explained that while the company's PC and server chip segments are expected to perform at the lower end of their seasonal spectrum, the overall revenue will also be impacted by underperformance in its subsidiary divisions.

Despite the disappointing forecast, Intel reported a significant improvement in its latest quarter results compared to the year-ago quarter. The company's GAAP earnings reached $2,669 million, or 63 cents per share, against a loss of $664 million, or a loss of 16 cents per share, in the previous year. This improvement was primarily driven by higher revenues and lower operating expenses.

Intel's non-GAAP earnings for the reporting quarter were $2,303 million, or 54 cents per share, compared to $635 million, or 15 cents per share, in the same period last year. These figures beat the Zacks Consensus Estimate by 10 cents. The company also reported GAAP revenues of $15,406 million, surpassing the $14,042 million reported in the previous year.

Despite the drop in share price, Intel retains its position as the largest semiconductor maker by revenue, according to market research firm Gartner. This underscores the company's significant influence within the industry.

Under CEO Gelsinger's leadership, Intel is actively executing a five-year plan initiated in 2021 to compete with Taiwan Semiconductor Manufacturing Co. It aims to enhance its chip offerings while entering the manufacturing services market. Gelsinger expressed confidence in the company's progress on this transformation journey.

In an effort to cut costs and streamline operations, Intel has made strategic moves such as workforce reductions and divesting smaller business units. Last year alone, these actions led to a cost reduction of $3 billion, including the spin-off of its programmable chip unit and the establishment of its self-driving car subsidiary, Mobileye, as an independent entity.

Despite the recent stock decline, investors can consider buying the dip in Intel through Intel-heavy Chip ETFs rather than directly purchasing the stock. Intel has exposure to ETFs such as First Trust Nasdaq Semiconductor ETF (FTXL), Strive U.S. Semiconductor ETF (SHOC), Invesco PHLX Semiconductor ETF (SOXQ), and iShares Semiconductor ETF (SOXX). These ETFs have varying degrees of exposure to Intel, ranging from 9.5% to 5.9%.

As Intel continues its transformation and faces market challenges, the company remains committed to returning value to shareholders. In 2023, Intel paid dividends totaling $3.1 billion, demonstrating its dedication to delivering returns amidst ongoing changes in the semiconductor landscape.

Despite the recent setback, Intel's position as a major player in the semiconductor industry, coupled with its ongoing initiatives, suggests that the company may be able to rebound in the future.