Intel reported fourth-quarter revenue of $13.67 billion, beating consensus estimates of $13.37 billion, and delivered non-GAAP EPS of $0.15 versus expectations of $0.08. However, management’s guidance for first-quarter revenue between $11.7 billion and $12.7 billion fell short of the $12.6 billion analysts had modeled, and EPS guidance was essentially flat. This downward revision drove a 5.7% share price decline on the day, erasing gains from the positive headline results and underscoring investor concerns over near-term growth.

CFO David Zinsner warned that persistent internal supply constraints will limit the company’s ability to capitalize on strong demand in server and AI markets. He noted that Intel is operating near full capacity across key process nodes but is still struggling with yield issues on its most advanced fabrication lines. These production bottlenecks are expected to depress sales and margins in the coming quarters and could force customers to divert orders to rival foundries if capacity remains tight.

Following the guidance miss, Intel’s stock underperformed major indexes that day, with volume at 4.8 million shares versus a 100 million-share average. Market participants have mixed views: some bullish analysts point to the company’s $225 billion market capitalization and its plans to prioritize high-margin AI-related products, while skeptics question whether supply improvements can arrive quickly enough to support growth. Management has indicated capital expenditure increases and yield-enhancement programs will be central to restoring capacity over the next 12 to 18 months.