Intel’s rollercoaster year exposes deep cracks in chip production and investor trust
Intel’s stock has seen wild swings in recent months. After rising over 150% in five months, shares plunged more than 12% in January following weak first-quarter guidance for the stock market today. The company now faces production struggles and mounting losses in its foundry division.
The chipmaker’s troubles stem from persistent bottlenecks and low yields in its fabrication plants. Despite strong demand for AI and server chips, Intel has failed to meet orders, leading to depleted inventories. CEO Lip-Bu Tan and CFO David Zinsner confirmed these issues contributed to a €300 million loss in 2025 and a grim 2026 outlook for the stock market.
The company’s foundry business has also haemorrhaged billions, dragging down overall performance. Intel is now racing to improve production efficiency and chip yields. Yet analysts warn the recent stock surge—fuelled by a federal government stake and new leadership—may have outpaced real progress in the stock market.
Intel remains a semiconductor giant, with a market value exceeding $200 billion. But flat revenue and GAAP losses during an industry boom highlight deeper challenges. Past missteps in strategy and execution continue to weigh on recovery efforts for the stock market.
Intel’s latest setbacks underscore the gap between market optimism and operational reality. With production delays and financial losses persisting, the company must now prove it can stabilise output and regain investor confidence in the stock market. The road to recovery hinges on fixing its fabrication struggles and delivering on demand.
