After months of riding positive vibes, the troubled chip maker reminded investors why it needed a rescue in the first place.

Intel Corp. shares plunged 17% after Chief Executive Officer Lip-Bu Tan gave a lackluster forecast and warned that the chipmaker was struggling with manufacturing problems.

Intel reported earnings that beat estimates, but flagged issue with manufacturing that weighed on the outlook for coming quarters.

Intel shares slid nearly 16% Friday morning, a day after the chipmaker told investors it hadn’t allocated enough production capacity to meet booming demand from data centers. “Revenue would have been meaningfully higher if we had more supply,

By Arsheeya Bajwa Jan 21 (Reuters) - Intel shareholders are optimistic about the company's results like they have not been for many quarters, betting the turnaround CEO Lip-Bu Tan promised was taking root and that rapid data center build outs were fueling strong demand for its traditional server chips.

Intel CFO David Zinsner indicated that Intel is “prioritizing [its] internal wafer supply to data center” and having more of its consumer chips made externally. Substantial portions of the Core Ultra Series 3 processors are manufactured at Intel, after the company primarily used TSMC’s chip factories for the Core Ultra Series 2 designs.

Intel’s stock has more than doubled over the last year with investments from the Trump administration, SoftBank and Nvidia.

By Arsheeya Bajwa and Max A. Cherney Jan 22 (Reuters) - Intel said on Thursday it struggled to satisfy demand for its server chips used in AI data centers, and forecast quarterly revenue and profit below market estimates,

Intel’s momentum reflects optimism about AI and manufacturing efforts, but analysts say earnings could underscore some challenges as well.

Intel is on pace for its worst selloff in nearly 18 months. The stock’s recent run had put the struggling chip maker in a difficult position. Intel was down nearly 17% Friday. The selloff came after t