Intel struggles to meet AI data center demand, shares drop 13%

Core Viewpoint - Intel is struggling to meet the demand for its server chips used in AI data centers, leading to a forecast of quarterly revenue and profit below market estimates, which caused a 13% drop in shares during after-hours trading [1][4]. Group 1: Financial Performance - The company forecasts current-quarter revenue between $11.7 billion and $12.7 billion, compared to analysts' average estimate of $12.51 billion [4]. - Intel expects adjusted earnings per share to break even in the first quarter, while analysts anticipated adjusted earnings of 5 cents per share [4]. Group 2: Market Challenges - Intel is facing difficulties in predicting global chip markets, as its current products are based on decisions made years ago [2]. - The company has been caught off guard by the surging demand for server central processors that accompany AI chips, despite running its factories at full capacity [3][6]. Group 3: Strategic Response - In response to its struggles in the AI chip market, Intel's CEO has implemented a turnaround strategy focused on cutting costs and streamlining management, while promoting a new product roadmap [7].