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Intel Stock Falls on Weak Q1 Forecast as Margins Shrink

AI-driven memory shortages are now constraining Intel's recovery.

Overview

  • Intel projected first-quarter 2026 revenue of $11.7 billion to $12.7 billion, targeting a gross margin near 32.3% and signaling a net loss around $2 billion.
  • Shares fell about 6% in after-hours trading after the guidance was released.
  • For the fourth quarter of 2025, Intel reported $13.7 billion in revenue and a net loss of $591 million, coming in less negative than expected.
  • Full-year 2025 revenue totaled roughly $52.9 billion with a sharply smaller reported annual loss, while Intel Foundry logged about $10.3 billion in losses despite modest external sales in Q4.
  • Analysts pointed to memory shortages driven by AI datacenter demand as a drag on shipments, and Intel remains behind Nvidia in accelerators even as leadership highlights the continuing importance of CPUs.