Intel stock plunge 2026 earnings guidance: 15% wipeout on supply woes

Your tech portfolio's taking a hit today. Intel shares plummeted more than 15% on Friday after the chipmaker issued weak guidance that caught investors off guard. Despite beating fourth-quarter estimates, the road ahead looks increasingly rocky for the American tech giant.

Intel stock plunge 2026 earnings guidance misses the mark

According to CNBC and LSEG data, Intel projects its first-quarter revenue to land between $11.7 billion and $12.7 billion. That's a significant miss compared to analysts' expectations of $12.51 billion. Even more concerning is the adjusted earnings per share, which the company expects to merely break even, falling short of the 5 cents predicted by Wall Street.

Yield struggles and supply shortages

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CEO Lip-Bu Tan didn't mince words during the earnings call. He admitted that the company won't be able to meet full demand for its products due to production inefficiencies. "Production efficiency, or yield, is also below my targets," Tan stated, emphasizing that the company's turnaround is a "multiyear journey" requiring immense resolve.

The long wait for foundry momentum

Investors were hunting for signs of life in Intel's foundry business, which manufactures chips for other firms. While CFO David Zinsner expects next-gen 14A technology customers to sign on in late 2026, analysts at RBC Capital Markets aren't so sure. They believe a "meaningful revenue contribution" from these customers won't show up until late 2028.