Intel Shares Plunge Following Weak Fourth-Quarter Guidance Despite Strong Data Center Growth
Intel (INTC) shares fell approximately 23% in after-hours trading following its third-quarter earnings report. While the company reported strong year-over-year revenue growth of 21% to $16.5 billion and beat adjusted EPS estimates, management issued a cautious outlook for the fourth quarter. Intel expects significant declines in profitability and revenue due to a slump in the PC market and an unexpected plant shutdown in Israel. The company's data center and AI segment showed exceptional strength, with revenue surging 78% year-over-year to $7.3 billion, driven by demand that continues to exceed supply. However, this was offset by a 5% decline in the client computing segment. Intel anticipates further headwinds in the PC sector as inventory levels are drawn down and industry-wide unit sales are projected to shrink through 2027.
Tickers: $INTC
Topics: Data Center Demand Intel Q3 Earnings PC Market Slump Revenue Growth Stock Price Volatility