Intel Shares Drop 17% Amid Q1 Guidance Concerns
- Intel’s stock dropped significantly following weak Q1 guidance.
- Market value loss due to manufacturing issues.
- Industry-wide supply shortages continue to impact financial performance.
Intel shares plunged by approximately 15% on January 23, 2026, after releasing a weak first-quarter guidance at its headquarters, primarily due to ongoing manufacturing yield issues and supply shortages.
The stock drop highlights Intel’s ongoing struggles amid competition and supply chain challenges, affecting market confidence and erasing billions in market capitalization despite previous government investments.
Intel’s stock experienced a sharp decline, falling by 13-16% on January 23, 2026. This decrease is attributed to Q1 2026 guidance not meeting expectations, despite Q4 2025 earnings beating estimates.
CEO Lip-Bu Tan and CFO David Zinsner addressed these concerns. Tan cited manufacturing and supply issues affecting the company’s ability to meet demand, impacting market confidence.
“We are disappointed that we are not able to fully meet the demand in our markets” and yields are “still below what I want them to be.” – Lip-Bu Tan, CEO, Intel
The impact of Intel’s stock drop extended beyond the company, notably influencing the broader semiconductor industry. This event also erased approximately $30-31 billion in market capitalization.
Financial analysts emphasized the importance of resolving manufacturing yield and supply shortages. These issues continue to weigh on Intel’s market position and financial outlook.
Analysts believe that Intel’s ability to compete against rivals in AI chip manufacturing is crucial. Addressing supply issues is vital for stabilizing its financial performance amidst a challenging market landscape.
Future developments in Intel’s manufacturing technology could significantly influence its market position. Historical data suggests that resolving supply chain disruptions is essential for recovery and stability.
