Business1 min read

Intel stock plunges 20% as chipmaker blames PC slowdown for weak guidance

By · Published by Everything Blog

In short

The company projected fourth-quarter adjusted earnings of 25 cents per share on revenue up to $16 billion, missing Wall Street targets due to persistent PC market contraction. Strong data center performance and artificial intelligence gains drove a 21% annual revenue increase in the third quarter, but could not offset weakness in client computing. Additionally, manufacturing expansion faces delays, with a second Arizona fabrication facility not slated to begin operations until late 2028.

Key points

  • Softness in the personal computer market is expected to persist through at least the firs…: Softness in the personal computer market is expected to persist through at least the first half of next year.
  • High-volume manufacturing of the 18A chip has begun in Arizona, though Intel currently re…: High-volume manufacturing of the 18A chip has begun in Arizona, though Intel currently remains the primary customer for the technology.
  • The company is relying on backing from the Trump administration, Nvidia, and SoftBank whi…: The company is relying on backing from the Trump administration, Nvidia, and SoftBank while managing manufacturing delays in Ohio and Arizona.

Sources checked by our analysis pipeline: 1

Intel shares plummeted in extended trading on Thursday after the chipmaker issued a weak fourth-quarter forecast, citing continued softness in the global PC market.

Here's how the company did in the third quarter, compared with estimates from analysts polled by LSEG:

- Earnings per share: 52 cents adjusted vs. 40 cents expected

- Revenue: $16.51 billion vs. $16.5 billion expected

Revenue climbed 21% from $13.7 billion a year earlier, the company said in a press release.

However, revenue in Intel's client computing and physical AI group fell 5% from the same quarter a year ago to $8.1 billion, missing estimates, even as data center and AI revenue jumped 78% to $7.3 billion.

Global PC shipments declined 4% in the second quarter from a year earlier due to soaring costs for memory and other components, according to Counterpoint Research.

For the current quarter, Intel said it expects adjusted earnings per share of 25 cents on revenue between $15 billion and $16 billion. Analysts were expecting revenue of $17.1 billion and EPS of 43 cents, according to LSEG.

"We see the PC…

Business