Intel CEO Lip-Bu Tan warned of one of the "most significant supply shortages in history." Akio Kon/Bloomberg via Getty Images

Intel shares plummeted as much as 25% in premarket trading Friday after the chipmaker warned about a weaker market as supply shortages linked to the AI boom bite.

As of around 7:45 a.m. ET, shares in the California-headquartered company were set to open at $68.48, down from $92.07 at Thursday's close.

On Thursday, it reported third-quarter revenue of $16.5 billion, up 20% from a year earlier. However, it forecast fourth-quarter revenue of $15 billion to $16 billion and earnings per share of $0.25 — down from $0.52 in the third quarter.

The AI boom is increasing demand for memory and server chips needed to train and run AI models, creating shortages that have pushed up memory prices.…