{"id":254702,"date":"2026-01-24T03:50:17","date_gmt":"2026-01-24T03:50:17","guid":{"rendered":"https:\/\/www.newsbeep.com\/il\/254702\/"},"modified":"2026-01-24T03:50:17","modified_gmt":"2026-01-24T03:50:17","slug":"intel-shares-plunge-after-company-admits-being-caught-shorthanded-on-chip-supply","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/il\/254702\/","title":{"rendered":"Intel shares plunge after company admits being caught shorthanded on chip supply"},"content":{"rendered":"

Intel<\/a> shares slid 17% Friday, a day after the chipmaker told investors it hadn\u2019t allocated enough production capacity<\/a> to meet booming demand from data centers.<\/p>\n

\u201cRevenue would have been meaningfully higher if we had more supply,\u201d Chief Financial Officer David Zinsner told Wall Street analysts on a conference call Thursday.<\/p>\n

First-quarter sales will be down about 4% from last year, the company said, even though there is strong demand from data centers for Intel microprocessors to help manage artificial intelligence tasks. Intel admitted it didn\u2019t see the demand coming and is scrambling to catch up.<\/p>\n

It\u2019s an embarrassing lapse for Intel and new CEO Lip-Bu Tan, who is trying to convince investors that he will manage the chipmaker more efficiently and effectively than his predecessors. Rivals are already eating into Intel\u2019s market share in PCs and data centers and Intel\u2019s lack of production capacity opens the door for competitors to take more business.<\/p>\n

Analysts were appalled by Intel\u2019s gaffe and said it casts doubt on Tan\u2019s turnaround plans, which depend on convincing other chip companies to use new generations of Intel\u2019s manufacturing technology. <\/p>\n

\u201cIn our view the stock is well ahead of Intel\u2019s capability to deliver a competitive\/profitable business model,\u201d Bank of America\u2019s Vivek Arya <\/a>wrote in a note to clients Friday. He reiterated his \u201cunderperform\u201d rating on Intel shares.<\/p>\n

Intel shares fell $9.25 on Friday, to $45.07.<\/p>\n

Bernstein Research analyst Stacy Rasgon said \u201cthe company appears to have woefully misjudged\u201d data center demand, with its production capacity \u201ccaught massively off guard.\u201d He has a $36 price target on Intel shares.<\/p>\n

The artificial intelligence market is dominated by Nvidia, whose graphics processing units (GPUs) provide the advanced computing power AI systems need. But AI\u2019s growth is also boosting demand for Intel\u2019s more conventional chips, called central processing units (CPUs), which help manage data centers and perform specific tasks for AI systems.<\/p>\n

That\u2019s the silver lining in Thursday\u2019s disappointing financial results. If Intel can do a better job matching production capacity to demand, it may yet capitalize on the AI boom \u2014 albeit to a much smaller degree than many other chip companies.<\/p>\n

Even with Friday\u2019s plunge, Intel\u2019s stock price has more than doubled since August. That\u2019s when Tan negotiated an $8.9 billion investment from the federal government. That was followed by billions more invested by SoftBank and Nvidia.<\/p>\n

On Thursday, Intel told investors it expects other tech companies will make decisions late this year or early in 2027 about whether to use Intel\u2019s factories to make their own chips. A consensus is emerging among analysts that Apple, and perhaps other companies, are near manufacturing deals with Intel.<\/p>\n

That could provide an enormous boost to Intel and its comeback effort, though revenue from such deals is probably at least two years away.<\/p>\n

\u201cReal benefits will take into 2028,\u201d Bank of America\u2019s Arya said, \u201cbut headline benefits from these customers could support the stock.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"Intel shares slid 17% Friday, a day after the chipmaker told investors it hadn\u2019t allocated enough production capacity…\n","protected":false},"author":2,"featured_media":254703,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[42,43,40,38,41,39],"class_list":{"0":"post-254702","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-headlines","8":"tag-headlines","9":"tag-news","10":"tag-top-news","11":"tag-top-stories","12":"tag-topnews","13":"tag-topstories"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/254702","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/comments?post=254702"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/254702\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media\/254703"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media?parent=254702"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/categories?post=254702"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/tags?post=254702"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}