Intel Foundry generated $4.5 billion in Q4 revenue, up 6.4% sequentially, supported by growing shipments of Intel 3-based Xeon 6 CPUs, Intel 4-based Arrow Lake, and (to a minimal degree) early Panther Lake wafers. EUV-based processes now account for over 10% of foundry revenue, up from less than 1% in 2023. However, as usual, the foundry business posted a $2.5 billion operating loss due to a mix of factors, including ongoing capacity investments and the early ramp-up of Intel's 18A.
Looking ahead into the first quarter, Intel forecasts revenue of $11.7 billion – $12.7 billion, which is down from the same quarter a year ago.
The prediction stems from continued supply constraints and the lack of buffer inventory that Intel sold in Q3 and Q4 2025. As a consequence, Intel will sell whatever it can get throughout the first quarter of 2026, something that inevitably hits margins, and they are projected to decline to 32.3% (as it will be harder to get as many of the premium SKUs out as possible). The good news is that the company's management expects supply conditions to improve starting in Q2.
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Anton Shilov is a contributing writer at Tom\u2019s Hardware. Over the past couple of decades, he has covered everything from CPUs and GPUs to supercomputers and from modern process technologies and latest fab tools to high-tech industry trends. ","collapsible":{"enabled":true,"maxHeight":250,"readMoreText":"Read more","readLessText":"Read less"}}), "https://slice.vanilla.futurecdn.net/13-4-11/js/authorBio.js"); } else { console.error('%c FTE ','background: #9306F9; color: #ffffff','no lazy slice hydration function available'); } Anton Shilov Social Links Navigation Contributing Writer Anton Shilov is a contributing writer at Tom’s Hardware. Over the past couple of decades, he has covered everything from CPUs and GPUs to supercomputers and from modern process technologies and latest fab tools to high-tech industry trends.
Gururu The news is very good. This might be the last great dip in stock price… Reply
LordVile And then the AI bubble pops this year and it goes under Reply
Key considerations
- Investor positioning can change fast
- Volatility remains possible near catalysts
- Macro rates and liquidity can dominate flows
Reference reading
- https://www.tomshardware.com/pc-components/cpus/SPONSORED_LINK_URL
- https://www.tomshardware.com/pc-components/cpus/intel-shares-down-13-percent-as-company-only-manages-to-shrink-losses-in-latest-earnings-demand-to-outpace-2026-supply-usd300-million-deficit-comes-despite-more-than-usd20-billion-in-outside-investment-from-nvidia#main
- https://www.tomshardware.com
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Informational only. No financial advice. Do your own research.