Intel’s logo is seen at India Mobile Congress 2025 in Delhi, India on October 11, 2025.
Kabir Jhangiani | Null Photo | Getty Images
intel Shares fell 14% on Friday after the chipmaker issued lackluster guidance and warned of supply shortages.
The company will not be able to meet all demand for its products, CEO Lipbu Tan said during a fourth-quarter earnings call with analysts on Thursday. He said production efficiency, or yield, was also below target.
“We are in the middle of a multi-year journey,” he said. “It will take time to resolve.”
The company expects first-quarter sales to be in the range of $11.7 billion to $12.7 billion, with breakeven adjusted earnings per share. This was below LSEG’s expectations for earnings of 5 cents a share and sales of $12.51 billion.
Intel shares more than doubled last year on hopes of a turnaround for the struggling U.S. chipmaker following investments from the U.S. government, SoftBank and Nvidia.
The company’s foundry business has long underperformed competitors that are reaping huge profits from the data center artificial intelligence boom.
Investors were looking for clarity on foundry customers who would be the next driver of stock prices. The company’s foundry business makes chips for other companies.
CFO David Zinsner told CNBC that Intel expects customers for next-generation 14A technology to emerge in the second half of this year.
However, analysts at RBC Capital Markets warned that “significant revenue contributions” from 14A customers may not emerge until late 2028.
“While we appreciate the recent excitement around the INTC opportunity, we do not yet see a clear path forward given further share decline, lack of an AI strategy, and uncertainty about the fab/packaging opportunity,” Jefferies analysts wrote.
Despite the soft outlook, Intel beat Wall Street’s fourth-quarter profit and revenue expectations.
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