Intel shares fell 14% Friday after the chipmaker issued weak guidance and warned it could not meet full demand for its products. CEO Lip-Bu Tan said production yields remain below targets and that the company is on a “multiyear journey” to improve efficiency.
Intel expects first-quarter revenue between $11.7 billion and $12.7 billion, with breakeven adjusted earnings per share, below analyst expectations of $12.51 billion and 5 cents per share. Despite the soft outlook, the company beat Wall Street’s fourth-quarter earnings and revenue projections.
Investors are closely watching Intel’s foundry business, which manufactures chips for other companies. CFO David Zinsner said customers for the next-generation 14A technology are expected in the second half of 2026, though analysts at RBC Capital Markets forecast meaningful contributions may not appear until late 2028.
Analysts at Jefferies highlighted concerns over lost market share, unclear AI strategy, and uncertain fab and packaging opportunities. The stock had doubled over the past year on hopes for a turnaround, supported by investments from the U.S. government, SoftBank, and Nvidia, but the latest guidance dampens near-term investor enthusiasm.
