New York, January 23, 2026, 06:31 EST — Premarket
- Intel tumbled 13.6% in premarket trading, hit by a weak outlook linked to supply constraints for AI data-center chips
- Stock index futures slipped, led by Nasdaq 100 futures, which fell 0.35% in early U.S. trading
- Investors are looking to this heavy earnings week for signs that AI spending is boosting profits
Intel shares plunged 13.6% in premarket trading Friday, dragging down AI-related chip stocks and pushing U.S. stock futures lower. At 5:57 a.m. ET, Nasdaq 100 futures had fallen 0.35%, while S&P 500 futures slipped 0.23%. (Reuters)
The selloff came after Intel issued a gloomy quarterly forecast and flagged a supply crunch for server CPUs used in AI data centers, alongside Nvidia’s GPUs — the chips powering heavy AI workloads. “In the short term, I’m disappointed that we are not able to fully meet the demand in our markets,” CEO Lip-Bu Tan told analysts. Finance chief David Zinsner added that cloud customers “were all a little bit caught off guard.” (Reuters)
The timing is crucial as Wall Street enters a packed earnings season, with investors eager to see if the AI spending surge is translating into profits rather than just higher capital expenditures. “It’s important just to hear … that they are continuing to push these uses and initiatives forward,” said Yung-Yu Ma, chief investment strategist at PNC Financial Services Group, ahead of reports from megacap giants that heavily influence index moves. (Reuters)
Costs are shifting within the AI supply chain. Global memory-chip prices have surged as AI infrastructure buildouts consume available supply, pushing up input costs for PCs and smartphones. This spike raises concerns about demand later in the year. “It is certainly going to show up as higher prices for consumers,” said Emarketer analyst Jacob Bourne. Reuters also noted that Apple is set to report earnings on January 29. (Reuters)
Intel’s warning hit hard, especially after the stock surged 84% last year and climbed roughly 47% in January alone, boosted by big-name backers like Nvidia, SoftBank, and the U.S. government. Bernstein analysts called the server cycle “real” but slammed Intel for “woefully misjudging it.” Jefferies pointed to Intel’s shrinking cloud share compared to AMD and persistent product troubles. Reuters estimated the premarket slide could wipe out about $31 billion in market value if it sticks. (Reuters)
The broader AI trade has rested on one key concept: data-center expansions keep rising, and the chip components — GPUs, server CPUs, memory, and networking — remain in short supply. Intel’s miss highlights how bottlenecks shift, showing that supply shortages can hit revenue despite robust demand.
There’s a downside risk as well. Persistent memory shortages and rising component costs could squeeze PC upgrade demand, dragging down chip volumes and pricing power. If cloud companies start pulling back on AI-related spending, it would probably hit the highest-multiple stocks fast.
Thursday’s session saw key AI names post gains: Nvidia closed at $184.84, AMD ended at $253.73, and Microsoft finished at $451.14. Arm wrapped up at $119.20, with Super Micro Computer at $32.45. Intel closed at $54.32 ahead of a dip in Friday’s premarket trading.
Traders are now eyeing the Federal Reserve’s policy decision set for January 28. After that, attention shifts to earnings and guidance from major AI investors, including Apple’s report due January 29. Investors will be looking closely for any shifts in tone around data-center demand, component supply, and margins. (Federalreserve)
