Shares in Intel (INTC) stock took a small hit on Thursday after the semiconductor company revealed its Q4 2025 earnings report and Q1 outlook. While its earnings exceeded expectations, investors were left concerned over the company’s lower than expected forecasts for Q1 2026.

The chipmaker said it expects first-quarter revenue of $12.2 billion, at the midpoint of its range and below the $12.6 billion projected by Wall Street analysts tracked by Bloomberg. Intel guided for earnings per share of $0 for the period, short of the estimated $0.08. Shares in INTC stock have tanked after trading hours, falling over 11%.

Intel’s corporate vice president of investor relations, John Pitzer, said in an interview that the softer-than-anticipated guidance was due to supply shortages. “Our biggest sort of challenge in the near term is we can’t meet all the demand that our customers are giving us,” Pitzer said in an interview. ” I think our supply constraints are most pronounced in Q1.”

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Meanwhile, Intel reported better-than-feared fourth-quarter earnings and revenue. CEO Lip-Bu Tan credited the rising AI demand for the success of its chips and CPU sales. Intel’s earnings per share of $0.15 for the period were slightly above the previous year’s $0.13 and ahead of the $0.09 projected, per Bloomberg data. The chipmaker’s fourth quarter revenue of $13.7 billion marked a 4% decline from the year-ago period but was higher than the $13.4 billion expected. “Our conviction in the essential role of CPUs in the AI era continues to grow,” CEO Tan said in a statement. “Our priorities are clear: sharpen execution, reinvigorate engineering excellence, and fully capitalize on the vast opportunity AI presents across all of our businesses.”

Intel (INTC) stock has gone on a stellar run in the past year, rallying over 100% in that span. YTD, INTC is already up over 20%, but that growth was stunted by this earnings report.