Intel shares fall more than 20% after hours on weak fourth-quarter forecast
Intel results: shares fell more than 20% after hours on a Q4 revenue forecast of $15 billion to $16 billion, well below the $17.1 billion analysts expected.
Intel results for the latest quarter showed revenue growth and strong demand for data center chips, but a weak fourth-quarter forecast sent the shares down more than 20% in extended trading on Thursday, 29 October, after the chipmaker cited continued softness in the global PC market. In regular trading on Friday the stock closed 29% lower; see our Intel share price story.
Intel Results: key numbers
- Revenue: up 21% from $13.7 billion a year earlier
- Client computing and physical AI group revenue: down 5% to $8.1 billion, missing estimates
- Data center and AI revenue: up 78% to $7.3 billion
- Q4 revenue forecast: $15 billion to $16 billion, against analysts’ expectations of $17.1 billion
- Q4 adjusted earnings per share (EPS) forecast: 25 cents, against 43 cents expected, according to LSEG
Adjusted EPS is profit per share that excludes certain one-off items, so it can differ from the reported figure.
Why the forecast fell short
Intel blamed the PC slowdown. Global PC shipments fell 4% in the second quarter from a year earlier, according to Counterpoint Research, as soaring costs for memory and other components weighed on demand. Finance chief David Zinsner said the PC slowdown would continue at least through the first half of next year.
The forecast also reflects an explosion at a fab in Israel earlier this month that killed two workers and seriously injured a third. Intel said the incident will cost about $600 million in lost revenue over two quarters, and CEO Lip-Bu Tan described an extended shutdown at the plant that is affecting shipments of 10-nanometer chips.
Strength in AI and CPUs
Intel has benefited from the rise of agentic AI applications, which lean on CPUs to coordinate tasks and data, rather than only the graphics chips that power chatbots. Tan said the company sees robust demand for CPUs over the long term, even as the PC industry faces near-term headwinds.
What to watch next
The shares had gained about 150% this year before the report, but were down roughly 23% in October over concerns about the size of the AI buildout. Zinsner said Intel will not spend capital without confidence in its products and clear evidence of customer demand. Investors will watch whether the PC slowdown eases after the first half of next year.
Read more quarterly results news on ArthaWire.
Frequently asked questions
What was Intel's fourth-quarter revenue forecast?
Intel expects fourth-quarter revenue of $15 billion to $16 billion and adjusted earnings of 25 cents per share, below analysts' expectations of $17.1 billion and 43 cents.
How much did Intel's data center and AI revenue grow?
Data center and AI revenue jumped 78% to $7.3 billion in the quarter.
This article is a summary for information only and is not investment advice. Figures are as reported by the sources above; please verify with the original filing or report before making any decision.
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