Intel Shares Plunge 28% Following Weak Q4 Revenue Guidance
Intel (INTC) shares experienced a massive selloff, dropping approximately 28% after the company issued disappointing fourth-quarter guidance. The chipmaker projected revenue between $15 billion and $16 billion, falling short of analyst expectations of $17 billion. Additionally, Intel warned of declining gross profit margins from 43% to 37% and expects negative cash flow due to heavy capital expenditures. The downturn is largely attributed to a slowdown in PC sales as the AI industry competes for memory and components, driving up system endpoint prices. While Intel's data center revenue grew by 78% year-over-year, the company faces challenges scaling manufacturing capacity to compete with TSMC. The stock crash also impacted government holdings and Nvidia (NVDA), which holds a stake in the company.
Topics: AI Industry Financial Guidance PC Market Semiconductors Stock Market Crash
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