Intel’s Stock Sinks After a Disappointing Outlook. The Chipmaker Has a Supply Problem

Intel wants to sell more products. Can it keep up?

Shares of the chipmaker slid late Thursday after Intel's (INTC) outlook missed analysts' projections. Executives in a statement warned that supplies could hit a low in the current quarter. 

"We expect our available supply to be at its lowest level in Q1 before improving in Q2 and beyond," CFO David Zinsner said in an evening statement, as the company contends with industry-wide supply shortages.

Intel has lately warned of supply issues, but investors reacted particularly strongly to the company's description of its effect on its near-term outlook—perhaps indicating valuation concerns given the shares' recent runup. The stock, which edged higher during the regular session, was recently off more than 6% in late action, indicating a return to prices that would reflect a cooling of its red-hot early 2026.

Intel said it expects breakeven adjusted earnings in the first quarter on revenue of $11.7 billion to $12.7 billion, below analysts' projections as compiled by Visible Alpha.

For the fourth quarter, Intel reported adjusted earnings of 15 cents per share on revenue of $13.67 billion, above analysts' estimates.

Related Education

Semiconductors: Functionality, Applications, and Investing Insights

10 Biggest Semiconductor Companies

CEO Lip-Bu Tan said the results showed progress in the company's "journey to build a new Intel," as it looks to "capitalize on the vast opportunity AI presents across all of our businesses."

Shares of Intel had surged in the weeks leading up to the release. They were up nearly 50% for January so far through Thursday's close amid growing optimism about Intel's AI sales.