Intel's Stock Sinks After a Disappointing Outlook. The Chipmaker Has a Supply Problem

Core Insights - Intel's outlook for the upcoming quarter has missed analysts' projections, leading to a decline in its stock price [1][6] - The company anticipates that supply levels will reach their lowest point in Q1 before improving in Q2 and beyond, as stated by CFO David Zinsner [1][6] Financial Performance - Intel expects breakeven adjusted earnings in Q1 with revenue projected between $11.7 billion and $12.7 billion, which is below analysts' expectations [4] - In Q4, Intel reported adjusted earnings of 15 cents per share on revenue of $13.67 billion, exceeding analysts' estimates [4] Market Reaction - The stock price of Intel fell more than 6% in after-hours trading, indicating a potential correction after a significant increase of nearly 50% in January due to optimism surrounding AI product demand [3][5] - The company's recent warnings about supply issues have raised valuation concerns among investors, particularly in light of the stock's recent performance [2][3]