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

Key Takeaways Intel shares slid in extended trading Thursday after the chipmaker's outlook missed analysts' projections. Executives warned supplies could hit a low this quarter. Intel wants to sell more products.

Intel's shares plunged 12% ‌on ​Friday after the company struggled to ‌meet strong AI demand for data-center chips due to supply constraints, ​disappointing investors betting on its turnaround. After years of sitting out the artificial intelligence boom that turned Nvidia ‍into the world's most valuable ​company,

Intel reported earnings that beat estimates, but flagged issue with manufacturing that weighed on the outlook for coming quarters.

Intel’s momentum reflects optimism about AI and manufacturing efforts, but analysts say earnings could underscore some challenges as well.

Intel › Shares of Intel (NASDAQ: INTC) tumbled on Friday after the semiconductor giant issued a subpar sales and profit forecast and warned of supply disruptions. By the close of trading, Intel's stock price was down more than 17%.

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.

Intel shares plunged Friday as investors grew frustrated with the company's turnaround timeline. Why it matters: The tech giant is trying to get back on its feet after falling behind in the AI chips race.