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

Core Insights - Intel's outlook for the current quarter missed analysts' projections, leading to a decline in shares as executives warned of potential supply shortages [1][5] - The company anticipates that supply levels will reach their lowest point in Q1 before improving in Q2 and beyond [1] - Despite recent optimism regarding demand for AI products, Intel's weaker outlook may dampen investor enthusiasm [2] 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] - For Q4, Intel reported adjusted earnings of 15 cents per share on revenue of $13.67 billion, exceeding analysts' estimates [4] - Shares of Intel had increased nearly 50% in January prior to the release, driven by optimism about AI sales [4]