Intel slumps in extended trading on weaker-than-expected outlook
By Josh White
Date: Friday 23 Jan 2026
(Sharecast News) - Intel shares slumped as much as 13% in extended trading on Thursday after the chipmaker issued a weaker-than-expected outlook for the first quarter, overshadowing better-than-forecast fourth-quarter results and reviving concerns about manufacturing constraints and margins.
The chip giant said it expected first-quarter revenue of between $11.7bn and $12.7bn, with adjusted earnings per share at breakeven, falling short of Wall Street expectations for around $12.5bn in sales and positive earnings.
Management said the soft guidance reflected supply shortages, particularly in server processors used in AI data centres, after the company ran its factories at capacity and depleted inventories late last year.
The forecast followed a fourth quarter in which Intel beat expectations, reporting adjusted earnings of 15 cents a share on revenue of $13.7bn, compared with forecasts of roughly nine cents and $13.4bn.
Revenue still fell about 4% from a year earlier, while the company posted a net loss of $600m, wider than the prior year's loss, as heavy investment and manufacturing inefficiencies continued to weigh on results.
Chief executive Lip-Bu Tan said demand for Intel's products, especially data-centre processors paired with AI accelerators, had been stronger than anticipated, but acknowledged that production yields from its latest manufacturing technology remained below desired levels.
Finance chief David Zinsner said supply would be tight through the first quarter before improving later in the year, adding that higher memory and component costs could also limit revenue opportunities.
The update dented a rally that had seen Intel shares surge over the past year on optimism that a turnaround was gaining traction, supported by strong AI-related demand and high-profile backing from the US government as well as investors including Nvidia and SoftBank.
Intel said its foundry unit generated $4.5bn in quarterly revenue, largely from internal customers, while its data centre and AI segment rose 9% year on year to $4.7bn.
Client computing revenue, which includes laptop chips, fell 7% to $8.2bn.
Investors were focused on whether Intel can translate its next-generation manufacturing processes into sustained gains and attract external foundry customers, as it looked to regain ground lost to rivals such as Advanced Micro Devices and Arm, while competing with industry leader Taiwan Semiconductor Manufacturing Company.
Management said it was engaged with potential customers on future technologies, but warned that improving execution and yields would take time.
Reporting by Josh White for Sharecast.com.
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