Intel Corp There has been a huge decline of 17% in the shares. For the first time in 17 months the stock has fallen so badly. There was a strong selloff in the stock after CEO Lip-Boo Tan gave a disappointing forecast and warned of facing manufacturing problems. The company’s revenue and earnings estimates for the January-March 2026 quarter fell well short of Wall Street estimates. In a conference call with analysts, Tan said it will take time as well as determination to get the company back on track, according to Bloomberg. This statement sent the shares further lower.
Production disruptions have hampered Intel’s comeback effort. This is disappointing for investors who were expecting more growth from new products. Intel, the largest maker of processors for personal computers, is struggling with low manufacturing yield. This yield is the percentage of usable chips coming out of the company’s factories. Fulfilling orders has become difficult due to low yields.
According to Bloomberg, CEO Tan said in an interview that demand is strong, and the company is working hard to fix its manufacturing problems. Intel shares fell to $45.09 on Friday. This is the biggest fall seen in a single day since August 2024.
Supply will increase every quarter this year
The company will not have additional supply, particularly of lucrative server computer chips, until the end of the first quarter, the company’s Chief Financial Officer Dave Zinsner said in a conference call with analysts. It will take several months for Intel to make more products. Zinsner said supply will increase every quarter this year. Expenditure on new plants and equipment in 2026 will be the same as last year. Any increase in output from new machinery will not occur until 2027.
US government stake in Intel
According to Bloomberg’s calculations, the US government still has a significant advantage over its 5.6 percent stake in Intel. The government had bought the stake for a total of about $8.9 billion and the US holding is currently worth about $20.4 billion on paper. Technically, taxpayers hold only about 27.46 crore shares. The rest is in an escrow account awaiting additional funds from a program. This program provides safe chip production to the government for military needs. However, according to US Securities and Exchange Commission regulations, all shares are included on Intel’s balance sheet.
Intel has said that its revenue for the January-March 2026 quarter will range from $11.7 billion to $12.7 billion. The company’s revenue fell 4.1 percent to $13.7 billion in the October-December 2025 quarter. Excluding a few items, profit was 15 cents per share. Last year its annual revenue was $53 billion.