Intel shares fell sharply after the chipmaker delivered disappointing guidance, blaming industry-wide capacity issues for limiting growth. The company cited persistent supply chain constraints as a primary headwind, rattling investor confidence in the semiconductor giant's near-term recovery prospects.

This warning arrives amid a broader global chip shortage that has crippled production for automakers and electronics firms for over a year. Intel's admission suggests the bottlenecks are not easing, complicating its efforts to regain market share from rivals like AMD and Nvidia in the competitive data center and PC markets.

Investors now question Intel's ability to execute its ambitious manufacturing expansion plans, including new U.S. and European fabs, without facing similar delays. The guidance implies that even as demand remains robust, Intel's own production capabilities may not scale fast enough to capitalize on it, putting pressure on its capital expenditure strategy.