Intel shares plunged more than 17% on Friday, wiping out weeks of gains after the chipmaker’s earnings outlook dashed hopes that its long-awaited turnaround was finally gaining traction.
The selloff came after Intel stock had surged nearly 50% in the past month, driven by optimism around artificial intelligence demand, fresh government support, and the launch of its new Panther Lake processors. Instead of confirming that momentum, the company delivered weaker-than-expected guidance for the first quarter.
While Intel beat estimates for the fourth quarter, it warned that internal supply constraints are limiting its ability to meet demand for server chips used in AI data centers. Analysts said the shortages point to deeper operational issues inside Intel’s manufacturing network.
“It almost turned into a meme stock for a bit,” Bernstein analyst Stacy Rasgon said. “A run like that going into earnings means you need a perfect report.”
Intel CEO Lip-Bu Tan said the company is working to improve efficiency and output at its factories, but investors remained cautious. By the close, shares fell to $45.07, marking Intel’s worst single-day drop in years.
Beyond the near-term miss, concerns are growing over Intel’s long-term strategy. The company continues to lose market share to rivals AMD and Arm, while its ambitious foundry turnaround still lacks major outside customers.
“Intel stock has been difficult because it’s not a clean story,” HSBC analyst Frank Lee said, adding that rebuilding the manufacturing business will take years.
Intel expects to announce customers for its next-generation 14A process in late 2026 or early 2027, with meaningful revenue unlikely before 2028.
For now, Friday’s collapse is a reminder that Intel’s comeback remains uncertain — and far from finished.
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