Intel Shares Plunge Over 28% Following Weak Q4 Guidance and PC Market Slump
Intel (INTC) shares experienced a significant sell-off, dropping more than 28%, after the company issued fourth-quarter revenue and earnings guidance that fell well below Wall Street expectations. While Intel saw massive growth in its data center and AI-related sales—which rose 78% to $7.3 billion—this momentum was offset by a 5% decline in its client computing segment due to high memory chip prices straining corporate IT budgets. Management's outlook for the fourth quarter, forecasting revenue between $15 billion and $16 billion, failed to meet analyst estimates of $17.1 billion. Compounding these concerns is an extended factory shutdown in Israel following an accident, which is expected to reduce server chip shipments. CFO David Zinsner warned that the slowdown in the PC market could persist through at least the first half of next year.
Topics: AI growth earnings report PC market weakness revenue guidance semiconductor industry