Intel Shares Plunge 15% After Fourth-Quarter Loss and Weak Near-Term Outlook

Core Viewpoint - Intel's shares dropped over 15% intra-day following a fourth-quarter loss and a pessimistic outlook for the current quarter, indicating significant challenges ahead for the company [1]. Financial Performance - Intel reported a net loss of $333 million for the fourth quarter, which was worse than Wall Street analysts had anticipated [1]. - For the first quarter, Intel expects a loss of $0.21 per share, highlighting ongoing difficulties in the competitive AI chip market [3]. Industry Challenges - Supply shortages driven by increased demand in data centers were identified as a major challenge, with CFO David Zinsner indicating that these shortages could last until 2026 [2]. - Intel's foundry business is lagging behind competitors like Taiwan Semiconductor Manufacturing Company, further complicating its market position [3]. Investor Sentiment - Investor confidence was negatively impacted by a lack of new disclosures, as Intel announced delays in updates regarding new foundry customers and provided limited information on potential buyers for its next-generation manufacturing technology [4].