Intel Shares Take a Hit: 17% Drop on Weak Q1 2026 Forecast Despite Earnings Beat
Intel Corporation shares experienced a significant drop of approximately 17% on January 23, 2026, following a less than stellar first-quarter forecast from CEO Lip-Bu Tan. The CEO cautioned investors that the chipmaker’s recovery would be a “multiyear journey.”
The semiconductor behemoth announced fourth-quarter 2025 results that surpassed analyst expectations. However, the weak Q1 2026 guidance cast a shadow over the positive earnings. Intel projected first-quarter revenue in the range of $11.7 billion to $12.7 billion, falling short of Wall Street’s expectations. The company pointed to persistent manufacturing issues and supply constraints as the factors preventing it from meeting robust customer demand.
Despite the stock’s recent surge—rising nearly 50% in early 2026 following President Trump’s positive remarks about Intel’s new processors—the weak outlook has shaken investor confidence. Intel had been one of the S&P 500’s top performers year-to-date before the earnings release.
The company spotlighted its new Core Ultra Series 3 processors, built on the Intel 18A process, as a significant milestone. They described it as “the most advanced semiconductor process ever developed and manufactured in the United States.” Nevertheless, supply constraints are impeding the company’s ability to capitalize on demand.
Source: Bloomberg