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Intel stock drops 14% as manufacturing troubles overshadow earnings beat

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The Intel logo is visible at the India Mobile Congress 2025 in Delhi, India, on October 11, 2025.

Intel shares plunged 14% Friday after the chipmaker issued lackluster guidance and warned of a supply shortage.

During a fourth-quarter earnings call with analysts on Thursday, CEO Lip-Bu Tan said the company wouldn't be able to meet full demand for its products. He said production efficiency, or yield, is also below his targets.

"We are on a multiyear journey," he said. "It will take time and resolve."

The chipmaker expects first-quarter revenue to range between $11.7 billion and $12.7 billion, and breakeven adjusted earnings per share. That was below LSEG expectations for earnings of 5 cents per share and $12.51 billion in revenue.

Over the last year, Intel shares have rallied more than doubled on hopes of a turnaround for the embattled American chipmaker, following investments from the U.S. government, SoftBank and Nvidia.