This year may be a better one for Intel Corp. (NASDAQ:INTC) than 2006, when Bloomberg News says the world's largest chipmaker's market share fell to its lowest level in more than four years.

Even so, Intel's fourth quarter earnings, which are due January 16, won't be one for the record books. Wall Street analysts, most of whom recommend that investors buy the stock, will be looking for signs that things are improving. Investors also consider Intel to be a bellwether for other tech stocks, since its chips are so widely used.

Analysts are forecasting profit of 25 cents compared with 40 cents a year earlier and revenue of $9.45 billion versus $10.2 billion, according to Thomson Financial. Profit has been hurt by both price cuts and competition from Advance Micro Devices Inc. (NASDAQ:AMD).

The company's results take on added importance as investors begin taking a new liking to the tech sector. Plus, as MarketWatch points out, Wall Street isn't ready to throw in the towel on Intel yet. Intel may be gaining ground in the notebook market, and PC sales may be boosted overall by the introduction of Microsoft Corp.'s (NASDAQ:MSFT) Vista, the web site says.

CEO Paul Otellini is hoping that investors will take note of its new products. He also has an ambitious plan to cut as much as $3 billion in costs annually starting next year. Some on Wall Street are willing to give him a chance to execute his plan.

Jeffries & Co. analyst John Lau summed up Intel's situation well when he spoke to Bloomberg after third quarter results in October: "They just got caught by a more nimble, maybe quicker-reacting competitor, who was really customer focused. They've responded to that.''

Also check out some other earnings reports that we're following, and let us know your thoughts on earnings expectations.