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Intel Shares Slide on Weak Q1 Outlook as AI Server Demand Outruns Supply

Intel says low 18A yields with depleted inventory will keep supply tight until Q2.

Overview

  • Intel beat Q4 expectations with $13.7 billion in revenue and $0.15 adjusted EPS, even as supply constraints limited shipments.
  • Management guided Q1 revenue to $11.7–$12.7 billion with breakeven adjusted EPS, citing the inability to meet current customer orders.
  • Executives pointed to below‑target yields on the 18A node, fabs running at capacity, and exhausted buffer inventory as key constraints.
  • Intel is shifting internal wafer capacity toward higher‑margin Xeon data‑center chips and focusing client output on mid‑to‑high‑end PCs as low‑end volumes give way.
  • Shares fell roughly 12%–17% in early trading, while the foundry unit posted $4.5 billion in revenue and about a $2.5 billion operating loss, with rising memory costs posing an additional headwind for PCs.