Intel shares plunged 17% after the company issued weak guidance and warned it could not meet full demand due to supply constraints and lower-than-target production efficiency.

CEO Lip-Bu Tan said the turnaround will take years, as Intel forecast first-quarter revenue and earnings below Wall Street expectations.

The stock suffered its worst single-day drop since August 2024 despite beating fourth-quarter earnings and revenue estimates.

Investors were hoping for clearer momentum from Intel’s foundry business, which has lagged competitors benefiting from the AI boom, CNBC has reported.

While Intel expects interest in its next-generation 14A technology later this year, analysts caution meaningful revenue may not arrive until 2028.