Intel shares tumble as supply chain snarls hamper turnaround

Intel's shares plunged 14 per cent on Friday after the company struggled to meet strong artificial intelligence-driven demand for data-center chips due to supply constraints, disappointing investors betting on its turnaround, reports Reuters.
After years of sitting out the AI boom that turned Nvidia into the world's most valuable company, Intel is finally enjoying a demand surge for its traditional server chips that are used alongside advanced graphics processors in data centers.
That and high-profile investments from the US government, SoftBank and Nvidia have reignited investor interest. Intel's stock outpaced most semiconductor firms last year with an 84 per cent gain and has extended its rally into 2026, up 47 per cent in January so far.
"The rally had been largely driven by 'the dream' rather than the near-term reality or fundamentals," TD Cowen analysts said.