Intel stock price sank on Friday after the chipmaker issued a weak forecast and signaled that its turnaround would take longer than many investors expected.
The sharp move followed quarterly results released Thursday and renewed focus on Intel’s ability to improve manufacturing yields, secure major customers, and rebuild earnings momentum.
Intel shares fell as much as 17.5% on Friday, marking a sudden reversal after months of optimism around the company’s recovery plan. By 1:16 p.m. New York time, the stock was down about 17%, putting it on track for its biggest one-day decline since 2024.
The selloff came after Intel’s first-quarter projections for revenue and earnings fell well short of Wall Street estimates. Investors focused on the gap between expectations for a near-term rebound and the slower progress Intel outlined for its manufacturing and customer pipeline.
Chief Executive Officer Lip-Bu Tan adopted a measured tone when addressing investors after the results. “We are on a multiyear journey,” Tan said on a conference call with analysts. “It will take time and resolve, but my team and I are committed to rebuilding this iconic American company.”
Tan’s comments reinforced that Intel views the recovery as a long arc rather than a quick reset.
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Intel told investors that yields remain below Tan’s expectations. Yields measure the proportion of usable, non-defective chips produced, and they influence costs, margins, and customer confidence in a manufacturing process.
Weak yields can also slow progress at Intel Foundry, the unit that aims to make chips for outside customers in Intel’s fabrication plants. Customers often want proof of stable output before committing to long-term supply agreements.
JoAnne Feeney, a partner and portfolio manager at Advisors Capital Management, described the dynamic on Bloomberg Television. “Customers aren’t going to lock in unless they know they have a manufacturing process that can deliver,” Feeney said.
Intel also disclosed that it still does not have an anchor customer for its most advanced 14A manufacturing process. The company expects firmer decisions from potential buyers in the second half of this year or the first half of 2027, extending the timeline for a major foundry win.
Meanwhile, Tan said Intel is hearing constructive signals from customers. “I’m hearing a clear, consistent message,” Tan said. “They see the progress we are making. They want Intel at the table as they navigate their own transformations.”
The US government’s investment has kept Intel’s turnaround in the public spotlight. Four months ago, the US moved to acquire up to a 10% stake in Intel as part of a broader push to strengthen domestic semiconductor manufacturing.
So far, the US owns 5.5% of Intel, a stake worth roughly $12 billion, and it holds options to acquire additional shares in the future. White House spokesman Kush Desai said President Donald Trump “remains committed to reshoring critical manufacturing and supporting American companies with a full policy suite of tariffs, tax cuts, and deregulation.”
Desai added that the administration’s equity stake in Intel reflects an investment in long-term American technology and manufacturing.
Investor attention also remained on Intel’s ability to supply processors used in artificial intelligence (AI) data centers. Intel had cut capacity on older production lines, then faced a surge of orders that left it unprepared to meet demand, according to comments shared on the earnings call.
Chief Financial Officer David Zinsner addressed inventory and supply planning. “We directionally weren’t managing the supply to an expectation that there would be a unit increase that significantly,” he said, responding to an analyst question.
Moreover, Intel has begun shipping its sub-2-nanometer 18A chips from facilities in Arizona and Oregon. However, the company acknowledged that 18A sits a generation behind its 14A ambition.
Intel’s Chips Act-backed Ohio project also remains delayed. The more than $28 billion site was expected to produce chips last year, but Intel now does not expect to begin operations until 2030, and executives did not mention the facility on the investor call.