What Led to Intel's 13% Stock Plunge?

Intel Corporation's stock saw a steep decline of 13% following the release of their fourth-quarter earnings report, which, despite beating Wall Street expectations, provided soft guidance for the upcoming quarter. Investors quickly reacted to the announcement, showing deep concerns about the company’s future performance in the semiconductor market.

What Were the Key Earnings Results?

In their latest earnings report for Q4 2025, Intel announced a net loss of $600 million, or 12 cents per diluted share, a significant decline from the previous year when the company reported a loss of $100 million, or 3 cents per share. The reported earnings per share (EPS) of 15 cents (adjusted) exceeded expectations of 8 cents, while revenue totaled $13.7 billion, surpassing the anticipated $13.4 billion[^1].

Despite these encouraging figures, Intel's forward-looking guidance raised alarms. The company projected first-quarter revenues between $11.7 billion and $12.7 billion, along with breakeven adjusted EPS. This was below analysts' expectations of $12.51 billion in sales and 5 cents earnings per share[^2].

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Why Is There Concerns About Chip Production?

Investor apprehension was fueled by Intel’s comments on production issues. Finance Chief, David Zinsner, indicated that the company's supply constraints have affected seasonal demand forecasts. He asserted that while the supply situation is expected to improve by the second quarter, current limitations are creating uncertainty regarding fulfilling customer demands[^2].

During a conference call, CEO Lip-Bu Tan emphasized the need to enhance production efficiency to boost the supply of Intel's products. He admitted that although yields are aligned with internal plans, they remain below his expectations[^1].

How Did Investors React?

The market responded strongly to this mixed financial performance. Shares of Intel dropped as much as 13% in after-hours trading, highlighting the market's sensitivity to guidance that falls short of expectations. This decline comes after a notable 147% increase in Intel's stock over the past year, driven by optimism regarding potential customers for its foundry business and advancements in manufacturing technology[^2].

Despite these setbacks, there remains optimism surrounding Intel's newest chips, particularly in the AI sector. Data Center and AI sales contributed $4.7 billion in revenue during the quarter, showing a 9% increase year-over-year[^1].

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Key Takeaways

• Intel reported Q4 2025 earnings that exceeded expectations, but the guidance for Q1 2026 disappointed markets.
• The company is facing supply constraints that have contributed to a projected lower revenue outlook.
• Stock prices fell sharply by 13% in response to the mixed earnings report.
• Strong demand persists for Intel's AI and data center chips, suggesting some areas of growth remain despite broader concerns.
  

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References

[^1]: Kif Leswing (2026). "Intel stock plunges 13% on soft guidance, concerns about chip production (https://www.cnbc.com/2026/01/22/intel-intc-earnings-report-q4-2025-.html)". CNBC. Retrieved January 22, 2026.

[^2]: "Intel reported fourth-quarter earnings Thursday that beat Wall Street expectations but offered soft guidance for the current quarter." CNBC. Retrieved January 22, 2026.

Keywords: Intel, stock market, semiconductor industry, earnings report, financial guidance, chip production, AI sales, revenue forecast.

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