Why Intel Stock Crashed Today

Core Viewpoint - Intel's stock price dropped over 17% following a disappointing sales and profit forecast, alongside warnings of supply disruptions [1][6]. Financial Performance - Intel's revenue for the fourth quarter decreased by 4% year over year to $13.7 billion, primarily due to declining sales in the Client Computing Group, despite growth in the Data Center and AI division [3]. - The company reported adjusted earnings per share (EPS) of $0.15, surpassing Wall Street's expectations of $0.08 [3]. Market Reaction - Following the earnings report, Intel's stock closed at $45.07, reflecting a decrease of $9.25 for the day [4]. - The market capitalization of Intel stands at $271 billion, with a trading volume of 295 million shares [5]. Future Outlook - Intel's management provided a first-quarter revenue guidance of $11.7 billion to $12.7 billion, which is below analysts' expectations of $12.5 billion [6]. - The company anticipates breaking even on an adjusted earnings basis, while consensus estimates had projected adjusted profits of $0.05 per share [6]. Supply Chain Concerns - CEO Lip-Bu Tan expressed disappointment regarding the company's inability to fully meet market demand, highlighting supply shortfalls as a significant concern [7]. - The supply issues raise doubts about Intel's capability to attract foundry customers from competitors like Taiwan Semiconductor Manufacturing, which is critical for Intel's long-term growth strategy [8].