Overview
- The company guided Q1 revenue to $11.7 billion–$12.7 billion with break‑even non‑GAAP earnings and forecast gross margin near 32%, prompting a roughly 17% drop to $45.07 on Friday.
- CFO David Zinsner said the team underestimated AI data‑center CPU demand and expects the supply crunch to worsen in Q1 before easing later in spring.
- CEO Lip‑Bu Tan described yields on the 18A process as below his targets, and the Panther Lake product mix remains dilutive to corporate gross margins in Q1.
- Intel’s foundry operations posted a $10.3 billion operating loss in fiscal 2025, and the company will defer 14A capacity investment until it secures customer commitments.
- Bank of America reiterated an underperform rating with a $40 target as analysts refocused on execution risks and questioned the pace of yield and utilization improvements.