India, Jan. 25 -- Intel shares plunged 14% on Friday after the company struggled to meet strong artificial intelligence-driven demand for data-center chips due to supply constraints, disappointing investors betting on its turnaround.

After years of sitting out the AI boom that turned Nvidia into the world's most valuable company, Intel is finally enjoying a demand surge for its traditional server chips that are used alongside advanced graphics processors in data centers.

That and high-profile investments from the U.S. government, SoftBank and Nvidia have reignited investor interest. Intel stock outpaced most semiconductor firms last year with an 84% gain and has extended its rally into 2026, up 47% in January so far.

"The rally had bee...