Intel reported fourth-quarter revenue of $13.7 billion and non-GAAP EPS of $0.15, modestly beating Wall Street’s consensus. Despite the beat, management set first-quarter revenue guidance of $11.7–12.7 billion and flat EPS expectations, significantly below analysts’ forecasts. Investors reacted sharply, sending the stock down 5.7% on Monday after a nearly 20% plunge the prior Friday, as the market digested the message that near-term sales and earnings will be constrained.

CFO David Zinsner warned that Intel’s foundry and internal segments are operating at near-full utilization but continue to struggle with yield issues on advanced process nodes. The company lacks sufficient capacity to meet strong demand from data-center customers, particularly for AI-optimized chips, and has limited ability to ramp new tools and wafer starts. Gross margin of 34.8% in Q4 reflects these inefficiencies, and management expects supply constraints to persist into the second quarter before capacity expansions and yield improvements provide relief.