New York, Jan 24, 2026, 18:38 EST — Market closed.
- Intel shares dropped 17% on Friday following a cautious Q1 forecast and remarks about supply constraints.
- Management admitted it’s having trouble keeping up with AI data-center demand for server CPUs, despite factories operating at full throttle.
- Investors are zeroing in on potential supply improvements in Q2 and watching closely for signs of new foundry clients.
Intel shares tumbled 17% on Friday, deepening losses after the chipmaker cautioned that supply constraints will limit short-term benefits from the AI-driven spike in data-center demand.
The slide hits because Intel’s January rally hinged on one thing: demand returning and CEO Lip-Bu Tan’s turnaround showing real results, not just talk. On Friday, traders had to start pricing in the delay. (Reuters)
Intel informed investors late Thursday that it won’t be able to meet the full demand for server CPUs paired with Nvidia’s graphics processors in AI data centers. Its first-quarter forecast also fell short of Wall Street expectations. (Reuters)
“In the short term, I’m disappointed that we are not able to fully meet the demand in our markets,” Tan said during the post-earnings call. (Reuters)
Intel projected revenue between $11.7 billion and $12.7 billion for the current quarter, falling short of the analysts’ consensus estimate of $12.51 billion. The company also expects adjusted earnings per share to hit break-even. (Reuters)
CFO David Zinsner acknowledged there’s a delay in retooling their factories, noting Intel hadn’t anticipated such a rapid shift in data-center demand. (Reuters)
On Friday, TD Cowen analysts argued that “the rally had been largely driven by ‘the dream’ rather than the near-term reality or fundamentals.” Jefferies and Oppenheimer, meanwhile, highlighted that supply constraints should ease by the second quarter, marking March as a crucial checkpoint. (Reuters)
PCs, Intel’s largest segment, face a supply crunch that’s complicating matters. A global memory shortage is driving prices up, potentially dampening laptop sales just as Intel launches its new “Panther Lake” chips aiming to regain ground lost to AMD. (Reuters)
A new wrinkle appeared in recent filings. On Jan. 23, Intel disclosed in an 8-K that it had filed a prospectus supplement related to securities held by the U.S. Department of Commerce from a previous deal. The company emphasized no fresh securities were issued, and Intel would not get any proceeds if the selling securityholder moves shares. (SEC)
Bulls face a timing challenge. Should the supply crunch persist or manufacturing gains fall short, Intel risks missing the AI data-center buildout surge that’s boosting chip demand. That would put pressure on the stock’s premium, which the rally carved out, making it tougher to justify. (Reuters)
Markets kick off Monday with Intel’s supply remarks expected to influence the chip sector, just days before the Federal Reserve’s policy meeting on Jan. 27-28, which might shift risk appetite for growth stocks. (Federalreserve)
