Intel’s AI Supply Chain Failure Triggers $46B Market Collapse
Intel's stock surged 120% in five months on AI hype, only to crash 17% when production shortfalls left it unable to meet data center demand. Bernstein analyst Stacy Rasgon summarized the debacle: "The stock went vertical on vibes and tweets. In theory, they should be in place to capitalize on this demand, but they’re not. What a shame."
While Nvidia and AMD rode the AI wave, Intel bled $10B annually from mismanaged fab investments. CEO Lip-Bu Tan admitted the obvious: "I’m disappointed we were not fully able to meet the demand from markets." CFO David Zinsner's supply chain confession—"It’s just literally hand-to-mouth"—epitomized the operational breakdown.