Chip Slip: Intel Shares Melt On Weak Guidance

Intel Corporation reported its fourth-quarter 2025 earnings, surpassing analyst expectations with revenue of $13.7 billion. However, the company’s outlook for the first quarter of 2026 disappointed investors, projecting revenue between $11.7 billion and $12.7 billion and breakeven earnings per share, below market forecasts. The announcement triggered a sharp 13% drop in Intel’s stock price, reflecting investor unease about supply constraints and production challenges.  

Intel’s finance chief acknowledged that the subdued guidance stems partly from insufficient supply to meet demand, with improvements expected only by the second quarter. Analysts noted that while Intel’s Q4 performance was solid, the weak forecast highlights ongoing struggles in scaling production amid intensifying competition from rivals like AMD and Nvidia.  

Key Highlights  

• Intel stock plunged 13% following soft guidance  
• Q4 revenue reached $13.7 billion, beating expectations  
• Company forecasts Q1 revenue between $11.7-12.7 billion  
• Earnings per share projected at breakeven, below analyst estimates  
• Supply constraints cited as a key challenge, with recovery expected later in 2026  

Future Takeaway  
Intel’s sharp stock decline underscores the importance of addressing production bottlenecks and supply chain issues. As the semiconductor industry faces rising demand, Intel’s ability to stabilize output and deliver consistent growth will be critical in regaining investor confidence and maintaining competitiveness in the global chip market.  

Sources: CNBC, CNBC TV18, Alpha Spread