Intel has warned it can't meet AI data centre demand, forecasting weaker results and sending shares sharply lower.

TechCentral

Intel warned it cannot meet surging demand for server CPUs used alongside AI chips in data centers, forecasting weaker quarterly results that sent shares down 13%. Despite running factories at capacity, the company faces supply constraints while launching new PC chips that squeeze margins. CEO Lip-Bu Tan acknowledged disappointment in not meeting market demand, while executives cited unexpected spikes in data center requirements and manufacturing lag times. The company's 18A manufacturing technology yields remain below targets, and a global memory chip shortage is further pressuring PC sales. Intel expects capital expenditure to remain steady rather than decline as previously anticipated.

Intel takes another hit