Intel shares plunged over 13% in premarket trading after issuing a weaker-than-expected first-quarter outlook, despite beating earnings. Forecasting revenue of $11.7 billion to $12.7 billion, Intel fell short of Wall Street’s projections. The company reported Q4 earnings of 15 cents per share on $13.7 billion in revenue, but concerns remain about supply levels hitting a low in Q1.

CEO Lip-Bu Tan discussed Intel’s multi-year turnaround, focusing on advanced manufacturing nodes like 18A and the development of the 14A process. Despite early customers evaluating 14A and PC chips shipping on 18A, yield issues and production ramp costs are impacting margins. The company continues to struggle to capitalize on the AI boom compared to competitors like Nvidia and AMD.

Intel’s data center business saw growth, but underestimated demand for server chips used with AI accelerators. Supply constraints and manufacturing bottlenecks are limiting the company’s ability to meet demand, despite strong interest in data-center and AI-related chips. The market’s reaction reflects skepticism about Intel’s manufacturing roadmap and revenue growth.

Read more at Yahoo Finance: Intel’s stock falls 13% in premarket trading, after missing Wall Street estimates