tech
January 29, 2026
Can Intel Cope with Demand for Next-Gen AI Chips?
Despite making headway in AI chip sales and data centre revenue, investor confidence in Intel appears to be wavering as chip yields remain in flux
TL;DR
- Intel's Q4 2025 earnings exceeded expectations, but shares dropped due to a cautious forecast and persistent supply constraints.
- Revenue expectations for the current quarter fall below analyst estimates, impacting optimism about manufacturing.
- Supply chain limitations and chip output issues are hindering Intel's ability to meet demand and compete with rivals like TSMC and Samsung.
- CEO Lip-Bu Tan is focused on regaining market share and revitalizing the foundry business, but acknowledges that chip yields are not yet at target.
- Despite investor enthusiasm for the 18A manufacturing node, Intel has not confirmed new major customer partnerships for its foundry services.
- Data Center and AI group revenue grew 9% year-on-year, driven by demand for AI workloads, but the Client Computing Group saw a 7% revenue decline.
- Intel's success hinges on improving chip yields and securing high-volume foundry customers.