Intel Shares Plunge Following Weak PC Sales Forecast and Lowered Revenue Guidance
Intel (INTC) shares experienced a significant decline following its Q3 earnings report, despite beating Wall Street estimates for adjusted EPS ($0.52 vs $0.40 expected). The company reported a 5% year-over-year drop in PC chip revenue to $8.1 billion and issued a cautious outlook, projecting Q4 revenue between $15.0 billion and $16.0 billion—well below the $17.1 billion anticipated by analysts. The downturn is being driven by rising memory chip costs, as high demand from AI data centers allows companies like Micron Technology (MU) to maintain significant pricing power. These increased component costs are driving up overall PC prices, causing consumer demand to soften. Intel's CFO warned that the slowdown in PC sales could persist through at least the first half of 2027.
Topics: AI Demand Impact Intel Earnings Micron Technology Stock Price PC Sales Slowdown Semiconductor Industry