By Zaheer Kachwala
April 21 (Reuters) - Intel (INTC.O) investors on Thursday will focus on its efforts to sort out supply chain issues that have limited the company’s ability to ramp up chip production to meet rising demand from businesses adopting AI-related services.
Intel has warned that supply constraints for its server chips that are used alongside graphics processors made by companies such as Nvidia will be most acute in the first quarter before easing in the second.
<ul>
<li>Intel is expected to report a 1.9% decline in first-quarter revenue to $12.42 billion and a near 90% drop in adjusted earnings per share, according to data compiled by LSEG.</li>
<li>The company’s data center and AI segment is expected to grow 6.8% to $4.41 billion.</li>
<li>Intel earlier this month expanded its AI CPU partnership with Google (GOOGL.O) and joined Elon Musk’s Terafab AI chip complex project to make processors.</li>
<li>“Rising demand for CPUs in AI data centers gives the company a steadier revenue lifeline that’s less dependent on the consumer PC cycle,” eMarketer analyst Jacob Bourne said.</li>
<li>Investors will also pay attention to the yields, or the number of good chips per silicon wafer, of Intel’s 18A manufacturing process.</li>
<li>“For Intel to make an outsized bid here, their 18A yield improvement has to be … better than market expectations,” said Ryuta Makino, analyst at Intel investor Gabelli Funds.</li>
</ul>
Intel shares rebound from 2024-25 lows on AI server demand
<img src="https://imageproxy.pbkrs.com/https://reut.rs/3OhZD6i?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" alt="" width="1420" height="848" original-src="https://imageproxy.pbkrs.com/https://reut.rs/3OhZD6i"/>

Intel's Q1 2026 earnings report will be released after the US stock market closes on Friday, April 24th (Beijing time), followed by a conference call at 5 PM.The three key areas to watch are the progress of its foundry business, its AI chip market share, and the mass production schedule for its 18A process. Can it deliver a turning point amidst the growing pains of transformation? Do you think this earnings report will be a buy signal or should we continue to wait and see？Feel free to share your thoughts in the comments below!

Intel's Q1 2026 earnings report will be released after the US stock market closes on Friday, April 24th (Beijing time), followed by a conference call at 5 PM.The three key areas to watch are the progress of its foundry business, its AI chip market share, and the mass production schedule for its 18A process. Can it deliver a turning point amidst the growing pains of transformation? Do you think this earnings report will be a buy signal or should we continue to wait and see？Feel free to share your thoughts in the comments below!

Intel Q1 Earnings Ahead — Will the AI Story Deliver?

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- Intel is addressing supply chain issues that have hindered its chip production, particularly for server chips crucial for AI services.  
- The company expects a 1.9% drop in first-quarter revenue to $12.42 billion, with nearly a 90% decline in adjusted earnings per share, though its AI and data center segment is projected to grow by 6.8%.  
- Analysts emphasize that improvements in Intel's 18A manufacturing yield will be vital for its competitive position amid rising AI demand.

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PREVIEW-Intel results to show if supply chain issues are dimming its AI ambitions