NEW YORK, Jan 24, 2026, 12:03 ET — Market closed.
- Intel shares ended Friday at $45.07, tumbling 17.03%.
- Investors are gearing up for next week’s Fed meeting and key tech earnings, hunting for signs that AI investments are boosting profits.
- Intel’s timeline for relieving chip shortages and boosting factory yields remains a crucial swing factor.
Intel Corp (INTC.O) plunged 17.03% to end Friday at $45.07. With U.S. markets shut Saturday, traders are left to mull over a steep sell-off that throws fresh doubt on one of the market’s most closely watched turnaround plays.
The selloff cuts deep at a fragile spot for the AI trade. Chip and cloud stocks were priced on the assumption that massive capital spending would flow smoothly into revenue gains, but Intel’s misstep throws a wrench into that expectation.
Roughly 20% of the S&P 500 will report earnings next week, including heavyweights Apple, Microsoft, Meta Platforms, and Tesla. Investors are focused on whether AI-related spending is finally translating into profit growth. “The earnings bar had better be met,” said Chris Galipeau, senior market strategist at Franklin Templeton, pointing to the index’s valuation north of 22 times expected earnings after three straight years of double-digit gains. Reuters
Intel reported difficulties meeting demand for server chips powering AI data centers and projected first-quarter revenue between $11.7 billion and $12.7 billion, falling short of analysts’ $12.51 billion forecast, per LSEG. Adjusted earnings per share are expected to hover around break-even, compared to the roughly 5 cents anticipated. The company also highlighted a memory-chip shortage that could hit PC sales. CEO Lip-Bu Tan admitted to analysts, “I’m disappointed that we are not able to fully meet the demand.” Meanwhile, Michael Schulman, CIO at Running Point Capital, described Intel’s turnaround as “supply-constrained rather than demand-constrained” as the firm aims to boost manufacturing yields—the share of usable chips from each wafer. Reuters
Intel shares jumped roughly 47% in January ahead of Friday’s drop, driven by optimism that AI data-center demand would lift its older server chips. CFO David Zinsner noted supply is expected to get better in Q2 after hitting a low in Q1, though brokers cautioned shortages might persist into early spring.
Intel’s remarks come amid a sector where clear winners have emerged and patience runs thin. Nvidia still leads the pack in high-end AI processors, while AMD has chipped away at Intel’s stronghold in PCs and servers, intensifying the pressure on its main franchises.
Intel’s sharp drop dragged on market mood Friday, despite the Nasdaq closing up. Julian McManus, portfolio manager with Janus Henderson’s Global Alpha Equity team, said investors are entering a “show-me” phase where firms must prove revenue growth, not just promise it. “I personally don’t see Intel being in the haves,” he added. Reuters
Intel’s troubles aren’t isolated. If shortages persist into Q2, customers might delay projects or reroute orders. Meanwhile, elevated memory prices could keep pressuring the PC market. A slip in megacap tech forecasts tied to AI spending would probably ripple back to chip stocks.
Monday’s open will reveal if Friday’s sell-off was just a one-off liquidation or the start of a more serious repricing. Intel is expected to lead the semiconductor sector’s move. Traders will also be tuned in for new analyst updates on the pace of easing supply constraints and factory yield improvements.
The Federal Reserve’s meeting on Jan. 27-28 looms as the next major market event, with a policy decision and press conference set for Jan. 28. Microsoft will report earnings after the close that day, followed by Apple on Jan. 29. Investors are watching closely, hoping for insights into AI spending trends and demand for data-center chips.
