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Intel Shares Sink on Weak Q1 Guidance as Capacity Constraints Mount

Management says available supply bottoms in Q1 with improvement expected in Q2 as yield work continues.

Overview

  • Intel forecast first‑quarter revenue of $11.7 billion to $12.7 billion with breakeven adjusted EPS, below Wall Street expectations and triggering a roughly 13%–17% stock drop.
  • Fourth‑quarter results beat estimates with $13.7 billion in revenue and $0.15 in adjusted EPS, shifting investor focus to near‑term supply limits and margins.
  • Executives said factories are running at capacity, available supply will be lowest in Q1, and a lag in shifting production mix limits how quickly Intel can prioritize server CPUs.
  • CEO Lip‑Bu Tan said 18A manufacturing yields remain below his targets even as Panther Lake chips begin shipping, contributing to margin pressure and constrained output.
  • Intel reported $4.5 billion in foundry revenue, completed a $5 billion stock sale to Nvidia, and said external customers are still evaluating its next‑generation 14A process with clarity expected later this year.