Intel’s AI Chip Supply Woes Trigger 17% Stock Plunge
Intel shares cratered 17% after first-quarter guidance revealed a stark disconnect between surging AI server chip demand and constrained manufacturing capacity. The $45.07 close erased months of Optimism about the chipmaker's turnaround, with supply chain limitations now overshadowing its ambitious product roadmap.
While revenue projections of $11.7B-$12.7B suggest underlying demand remains robust, execution risks dominate the narrative. Analysts note the selloff reflects repricing of expectations after the stock's January rally overshot near-term fundamentals.
The semiconductor bellwether's struggle to scale production exposes broader industry tensions: AI-driven order volumes are testing even legacy manufacturers' capabilities. Traders will monitor Monday's session for signs of stabilization, though visibility on supply chain normalization appears limited to gradual second-half improvements.
