Intel (INTC) Stock: Why Shares Crashed 13% After Earnings Despite Revenue Win

TLDR

• Intel shares plummeted 13% in extended trading after issuing disappointing first-quarter guidance
• Manufacturing yield problems prevent Intel from meeting strong demand for AI server processors
• Q1 revenue forecast of $11.7-12.7 billion fell short of the $12.51 billion analyst consensus
• The company’s 18A production technology yields remain below CEO targets despite monthly improvements
• Intel posted a Q4 net loss of $600 million compared to $100 million loss in the prior year

Intel’s stock took a beating Thursday evening despite delivering better-than-expected fourth-quarter results. The shares dropped 13% after hours as investors focused on the company’s underwhelming outlook.

The chipmaker posted Q4 adjusted earnings of 15 cents per share on $13.7 billion in revenue. Both figures exceeded Wall Street’s projections. But the forward-looking guidance told a different story.

Intel forecasted first-quarter revenue of $11.7 billion to $12.7 billion. That missed the analyst consensus of $12.51 billion. The company also expects to break even on adjusted earnings per share. Analysts had projected 5 cents per share.

Intel Corporation, INTC

Finance chief David Zinsner explained the company doesn’t have enough supply to meet seasonal demand. He told CNBC that supply conditions should improve during the second quarter.

Supply Constraints Limit Revenue Growth

Intel faces an unusual challenge. The company can’t produce enough chips to satisfy customer orders. This particularly affects server processors used in AI data centers.

The supply bottleneck centers on Intel’s 18A manufacturing technology. The company began shipping Panther Lake PC chips built with this process. However, production yields continue to lag.

Previous reports indicated only a small fraction of 18A chips meet quality requirements. Low yields squeeze profit margins. Tan confirmed yields improve each month but remain insufficient.

Data Center and AI revenue reached $4.7 billion in the quarter, climbing 9% annually. Client Computing Group revenue fell 7% to $8.2 billion as PC sales weakened.

Intel recorded a $600 million net loss, or 12 cents per diluted share. The year-ago period saw a $100 million net loss.

Future Technology Development

Zinsner revealed Intel has delayed heavy investment in its 14A manufacturing process. The company awaits commitment from a major customer. Two clients currently assess the technology’s specifications.

Intel expects clarity on external 14A adoption during the second half of this year. Capital spending increases will signal new customer agreements, according to Zinsner.

The foundry division generated $4.5 billion in quarterly revenue. This includes chips manufactured for Intel’s internal use. Tan emphasized the company’s aggressive efforts to boost 18A supply.

Intel finalized its $5 billion stock sale to Nvidia in the quarter. SoftBank and the U.S. government also invested billions in the chipmaker last year.

Zinsner told Reuters that major cloud providers underestimated AI demand. They rushed to replace outdated chips suffering from networking performance degradation. Intel struggles to quickly shift production between different chip types.

A worldwide memory chip shortage drove up prices and increased PC costs. Zinsner projected the tightest supply conditions in Q1 with improvement expected in Q2.

The stock surged 147% over the past year on optimism about foundry prospects and new manufacturing capabilities. Shares jumped 84% in 2025, beating the semiconductor index’s 42% gain.

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