INTC stock is plunging today despite Intel earnings that beat Wall Street expectations. Here are 2 reasons why

Shares in Intel Corporation (Nasdaq: INTC) are plunging in pre-market trading this morning. The stock price fall comes after the chipmaker reported its Q4 2025 earnings after the closing bell yesterday. But it’s Intel’s forecast, rather than its latest results, that seems to be driving the stock price’s fall. Here’s what you need to know.

Intel reports Q4 earnings

Yesterday, Intel reported its Q4 2025 and full fiscal 2025 results. For its full fiscal 2025, the company reported $52.9 billion in revenue. That compares with the $53.1 billion in revenue the company brought in during its fiscal 2024.

But what investors were mainly interested in were the company’s Q4 2025 results and its Q1 2026 forecast—the quarter Intel is now operating in.

For Intel’s Q4 2025, the company reported revenue of $13.7 billion. That was down about 4% from the $14.3 billion the company reported in the same quarter a year earlier. The company’s Non-GAAP earnings per share (EPS) were 15 cents. That was an increase from the 13 cents Non-GAAP EPS the company achieved in its Q4 a year earlier.

As noted by CNBC, Intel’s EPS of 15 cents and revenue of $13.7 billion both beat LSEG estimates, which were 8 cents and $13.4 billion, respectively. 

However, despite these beats, Intel shares fell sharply, with the stock down more than 13% in pre-market trading as of the time of this writing.

Intel unable to meet AI data center demand

There are two primary reasons for Intel’s pre-market share price plunge this morning. The first is its Q1 revenue and adjusted EPS forecast. The company said it expects revenue during its first quarter to reach between $11.7 billion and $12.7 billion. It said its adjusted EPS is expected to come in flat.

As CNBC notes, Intel’s Q1 revenue forecast range is mostly below the $12.51 billion analysts were expecting. The company’s adjusted EPS of 0 cents is also below the 5 cents analysts were expecting.

But what has spooked investors the most is the comments Intel made about the demand for its server chips that are used in AI data centers. The good news is that the demand for these chips is extraordinarily high. The bad news, Intel announced, is that the company is unable to meet this demand.

As Reuters notes, Intel decides years ahead of time on its manufacturing output, and the company was caught off guard by the AI data center boom. That means Intel is essentially leaving money on the table because it is unable to supply all the chips its customers are demanding.

If there’s a bright side to Intel’s forecast, it’s that the company expects its Q1 supply to be at the lowest level, before improving in Q2 and later. 

INTC stock plunges after earnings

After Intel’s disappointing Q1 forecast, shares in the company sank after hours yesterday and remain highly depressed as of the time of this writing.

Currently, INTC shares are down more than 13.6% in pre-market trading to $46.92 per share. Yet while investors are clearly disappointed in Intel’s Q1 forecast and the company’s current inability to meet customer demand, it’s still worth noting that Intel shares have had a terrific run as of late.

As of yesterday’s close, before today’s pre-market price drop, INTC shares have seen their price surge by a staggering 47% since the year began. Over the past twelve months, INTC shares have jumped more than 148% as of yesterday’s close.

What investors will be looking for now is signs that Intel can boost its manufacturing capacity to meet customer demand and thus fully take advantage of the AI boom engulfing the economy.

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