Intel Cuts Q1 Revenue and Profit Forecast Below Estimates - INTC

Intel lowered its first-quarter revenue and profit outlook below analyst expectations on January 22, citing supply constraints for server chips used in AI data centers. The company projected revenue of $11.7 billion to $12.7 billion, below the $12.51 billion consensus estimate, and expects adjusted earnings per share to be flat, versus a forecast of 5 cents. The weak guidance sent Intel shares down 7% in after-hours trading. Demand for traditional server chips has surged due to AI-driven data center expansions by major tech firms, but supply challenges persist. CFO David Zinsner noted cloud providers were caught off guard by rapid demand growth and are upgrading aging chip fleets amid declining networking performance. Intel’s new 18A manufacturing process, used in its Panther Lake PC chips, faces low yields, which are weighing on margins. Memory chip shortages have also raised PC costs, hurting Intel’s core market. The company continues to lose ground to AMD and Arm in the PC segment despite recent investments from Nvidia, SoftBank, and the U.S. government. Intel's stock rose 84% in 2025, outpacing the semiconductor index, but supply issues remain a near-term headwind.