Intel said Thursday it expects its CPU shortage to peak in the first quarter as the company indicated that the ongoing AI data center boom is creating unexpectedly high demand for server chips.

Over the last year, Intel shares have rallied more than double on hopes of a turnaround for the embattled American chipmaker.

Intel's CFO didn't mince words in describing the company's chip supply situation as the semiconductor giant struggles to meet customer demand despite ramping up production at its Arizona and Oregon factories.

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 stock (INTC) continues to fall lower in Friday's pre-market trading after the hardware and chip manufacturer released disappointing first quarter guidance. Yahoo Finance Tech and Markets Reporter Laura Bratton comes on Morning Brief to break down the biggest takeaways from Intel's earnings release,

Intel beat Q4 earnings expectations, but weak guidance and chip supply bottlenecks sent INTC stock sharply lower after the report.

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,

The troubled chip maker has seen its shares rise with AI demand and new investors, but revenue sagged 3.9% year-over-year to $13.7 billion.