Intel’s share price slid sharply on January 23, 2026, after the chipmaker issued a first-quarter 2026 revenue and earnings outlook that fell below Wall Street forecasts, prompting concern among investors about near-term growth and supply constraints. The stock fell as much as 17 percent in trading following the announcement.
The company guided to first-quarter revenue of around US$12.2 billion at the midpoint, below the approximately US$12.6 billion analysts had expected, and forecast break-even earnings per share, short of the consensus estimate of about US$0.08. Executives told Yahoo Finance that the softer guidance primarily reflected ongoing supply shortages that are restricting Intel’s ability to meet strong demand for its processors, particularly those used in AI data centers.
Despite the weaker outlook, Intel reported better-than-expected fourth-quarter results, with revenue of around US$13.7 billion and adjusted earnings per share of US$0.15, modestly beating analyst estimates. The company also noted double-digit growth in some AI-related segments in the fourth quarter.
Intel corporate vice president of investor relations John Pitzer acknowledged that supply constraints are most pronounced in the first quarter, adding that the company is working to increase output from its semiconductor manufacturing plants, or fabs.
The guidance miss came at a time when Intel is navigating intense competition from rivals including Advanced Micro Devices (AMD) and firms using Arm-based designs, and is investing heavily in advanced process technologies like its 18A and 14A nodes. These investments are expected to weigh on margins in the near term and add pressure on revenue potential for 2026.
The reaction highlighted market sensitivity to future growth prospects even when recent quarterly results show resilience, illustrating the narrow path Intel must tread as it pursues recovery and scaling in highly competitive segments of the semiconductor industry.
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