New York, January 23, 2026, 04:58 a.m. EST — Premarket
Intel Corp shares dropped roughly 14% to $46.69 in premarket trading Friday after the chipmaker warned first-quarter results would fall short of Wall Street estimates and flagged tight supply on key products. (Public)
Intel’s warning comes at a tricky time. Investors had pinned hopes on a rebound fueled by AI data centers and a new PC lineup, but the stock’s reaction shows dwindling tolerance for yet another quarter of supply falling short of demand.
Intel’s shares jumped earlier this month on hopes of a surge in AI-driven sales, but the company’s latest forecast shifts the focus to supply constraints rather than demand. CFO David Zinsner warned that supply will tighten in the first quarter before easing up later in the year. (Investopedia)
Intel reported Thursday night that fourth-quarter revenue slipped 4% year-over-year to $13.7 billion. The company posted a GAAP loss of 12 cents per share, though adjusted earnings came in at 15 cents. For the first quarter, Intel forecast revenue between $11.7 billion and $12.7 billion, with adjusted earnings expected to break even. CFO Zinsner noted, “We expect our available supply to be at its lowest level in Q1.” (SEC)
On a call, CEO Lip-Bu Tan and his team admitted they were blindsided by a surge in demand for server CPUs that complement Nvidia’s leading AI graphics chips, even as Intel’s factories are running full throttle. Intel forecasted revenue below analysts’ consensus of $12.51 billion and said earnings would fall short of the 5 cents per share expected, according to LSEG data cited by Reuters. Michael Schulman, CIO of Running Point Capital, summed up the short-term issue bluntly: “Intel’s turnaround story remains supply-constrained rather than demand-constrained.” (Reuters)
The squeeze is significant since data-center chips usually generate more profit than PCs, and Intel is pouring funds into revamping its product lineup and manufacturing capabilities. Delays in delivering these high-margin components risk pushing back the financial returns investors expect.
Options traders appeared to be hedging ahead of Friday’s session. Nasdaq data revealed heavy activity in Intel options on Thursday, with particularly large volume in $50 strike put options expiring January 23. These contracts are commonly used as downside protection, allowing holders to sell shares at a predetermined price. (Nasdaq)
The road ahead isn’t straightforward. Without a supply boost in the second quarter, Intel could miss out on sales during a crucial AI expansion. At the same time, ramping up production and struggling with low yields could tighten margins just when the company needs them to improve.
