Intel's reorganization: supply bottlenecks, AI chips and Wall Street reactions

Restrained Refurbishment Capacity Problems Weigh on Intel

2026-01-23 Source: dpa 1 min Reading Time

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The chip company Intel is being held back on its reorganization course by supply bottlenecks, as has now been revealed ...

Chip manufacturer Intel is struggling with declining market penetration of its products, which is why it has embarked on a course of restructuring. But there are headwinds on this path ...(Image: Intel) — Chip manufacturer Intel is struggling with declining market penetration of its products, which is why it has embarked on a course of restructuring. But there are headwinds on this path ...
(Image: Intel)

Intel once dominated the semiconductor market, but has been under pressure for years. Mainly because of Nvidia's AI chips. But the general business with PC processors and data center chips is also cooling down. The sales forecast of 11.7 to 12.7 billion dollars for the current quarter also disappointed Wall Street. Intel shares fell by over six percent in after-hours US trading in an initial reaction. Analysts are mainly focusing on the shortage of memory chips, which is why fewer PCs can be built with Intel chips. The reason for the bottlenecks is that the demand for memory for AI data centers is straining production capacities.

Cost Reductions Should Give Intel the Upper Hand

In the last quarter, Intel still exceeded analysts' expectations despite a drop in sales and red figures. Revenues fell by four percent year-on-year to 13.7 billion dollars. The bottom line was a loss of 591 million dollars after a loss of 126 million dollars in the same quarter of the previous year. Under Lip-Bu Tan, who has been in charge for just under a year, Intel is attempting to emerge from the crisis by cutting costs, among other things, and has therefore abandoned plans to build a plant in Magdeburg, Germany. In August, under pressure from President Donald Trump, the US state received a stake of around ten percent in Intel in return for billions in subsidies previously promised free of charge. The Intel share price has doubled since then.

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