Intel Stock Plunges 15% Amid Q4 Losses and AI Supply Shortages
By Staff Reporter
January 23, 2026 – Shares of Intel Corporation (NASDAQ: INTC) tumbled more than 15% in intraday trading on Friday following the release of disappointing fourth-quarter earnings and a bleak outlook for the coming period, highlighting persistent challenges in the company’s push to capture a slice of the booming artificial intelligence market.
Intel reported a net loss of $333 million for the final three months of its fiscal year, far exceeding Wall Street expectations and underscoring the mounting costs associated with ramping up production to meet surging AI-driven demand.[1][3] Revenue for the quarter came in at $13.7 billion, down 3.9% from the previous year, despite a beat on top-line estimates.[2][3] The stock, which had nearly doubled over the past year buoyed by investments from heavyweights like Nvidia, SoftBank, and the U.S. government, closed at $54.32 on Thursday before plummeting to around $46.94 in premarket trading—a drop of over 13%.[1][3]
Supply Shortages Hamper AI Ambitions
The core issue plaguing Intel revolves around industry-wide supply constraints triggered by explosive demand for data center infrastructure to support AI applications. Chief Financial Officer David Zinsner described the shortages as a pervasive problem that could linger well into 2026, severely limiting the company’s ability to fulfill orders.[1][3] This comes at a critical juncture as Intel, under new CEO Lip-Bu Tan, races to compete against dominant players like Nvidia and Advanced Micro Devices (AMD) in the AI chip arena.
Intel’s Data Center and AI segment offered a glimmer of hope, posting $4.7 billion in revenue—a 9% increase year-over-year—fueled by heightened investments in AI systems where Intel’s central processing units (CPUs) play a vital role.[3] However, this growth was offset by weakness elsewhere. The Client Computing Group, responsible for laptop and PC chips, saw sales decline 7% to $8.2 billion, reflecting a softening personal computer market.[3]
Tan emphasized the importance of improving production yields—essentially the efficiency of chip manufacturing—as key to alleviating supply bottlenecks. While yields met internal targets, the CEO admitted they remain below desired levels, signaling ongoing operational hurdles.[3]
Foundry Business Lags Behind Rivals
Intel’s foundry division, which aims to manufacture chips for external customers and rival Taiwan Semiconductor Manufacturing Company (TSMC), continues to underperform. Investors were left disappointed by the absence of updates on new foundry customers and potential adopters of Intel’s advanced 14A manufacturing process technology—a next-generation node critical for future competitiveness.[1] The company postponed such disclosures until later in the year, further eroding confidence.[1][3]
For the first quarter, Intel forecasted a loss of $0.21 per share, painting a cautious picture amid these headwinds.[1] Analysts had hoped for more concrete progress announcements, such as major clients like Apple signing on for 14A tech, but none materialized.[3]
Broader Market Context and Investor Reaction
Despite the rally fueled by fresh capital—Intel’s shares had surged 147% in the prior year—the earnings miss and weak guidance overshadowed any positives.[3] Supply chain woes, exacerbated by AI hype, have created a paradox: booming demand but inability to deliver, reminiscent of bottlenecks seen across the semiconductor sector.
“The weak guidance and supply shortage concerns overshadowed the quarterly beat, intensifying doubts about Intel’s ability to mount a competitive challenge,” noted one analysis.[3] Trading volume spiked as investors reassessed the chipmaker’s trajectory in an AI landscape increasingly cornered by Nvidia and AMD.
Intel’s struggles are part of a larger narrative in the tech sector, where legacy players grapple with transformation costs while newcomers capitalize on AI fervor. The company’s pivot to foundry services, backed by government subsidies, represents a high-stakes bet, but execution risks remain high.
Looking Ahead
As Intel navigates these turbulent waters, all eyes will be on production ramp-ups and customer wins in the foundry space. With AI demand projected to persist, resolving supply issues could be the linchpin for recovery. However, prolonged shortages risk ceding further ground to rivals.
Market watchers will monitor upcoming quarters for signs of yield improvements and deal announcements. For now, Intel’s sharp share decline serves as a stark reminder of the capital-intensive realities behind the AI gold rush.
This article is based on earnings reports and market analyses from January 23, 2026. Stock prices are subject to rapid change.