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Intel Slumps on Weak Q1 Outlook as Supply Constraints Cap AI Server Sales

Management flags a first-quarter supply trough, with 18A yields below targets slowing deliveries.

Overview

  • Intel guided first-quarter revenue to $11.7–$12.7 billion with breakeven adjusted EPS, missing Wall Street expectations.
  • Executives said fabs are running at capacity yet cannot meet surging AI data-center CPU demand, with supply expected to be lowest in Q1 before improving in Q2.
  • Management said 18A manufacturing yields remain below targets, complicating the production ramp and pressuring margins.
  • The stock fell between 12% and 17% across trading sessions, erasing roughly $31 billion to $35 billion in market value.
  • Two prospective external customers are evaluating Intel’s 14A node without commitments, and rising memory prices could further dampen PC demand.