Intel’s Supply Chain Woes Overshadow Earnings Beat as Chip Demand Outstrips Capacity

Intel shares plunged 13% in extended trading despite topping Q4 earnings estimates, as investors balked at weaker-than-expected guidance revealing critical supply constraints. The chipmaker posted $13.7 billion revenue and 15-cent adjusted EPS, surpassing analyst projections, but its Q1 revenue forecast of $11.7-$12.7 billion fell short of the $12.51 billion consensus.

Manufacturing yield issues on 18A process nodes have crippled Intel's ability to meet surging demand for AI data center chips. "We're literally leaving business on the table," CFO David Zinsner conceded, noting the company cannot fulfill orders during peak seasonal demand. The supply crunch comes despite Intel's $5 billion stock sale to Nvidia and $4.5 billion foundry revenue showing underlying market strength.

CEO Lip-Bu Tan acknowledged production shortcomings: "Our yields remain below target, constraining output of next-gen products." The disclosure triggered a sector-wide reevaluation of semiconductor stocks, with traders shifting focus to competitors boasting more resilient supply chains.