Intel grapples with AI data-center demand as yields lag and margins squeeze

Intel said it cannot meet surging demand for server CPUs tied to AI data centers and forecast Q1 revenue of $11.7–$12.7 billion with breakeven earnings per share, below consensus. CEO Lip-Bu Tan is cutting costs and steering a new product roadmap, but 18A yields remain below targets and 14A development depends on external customers. The news triggered about a 13% after-hours share drop as supply constraints weigh on data-center sales and margins.