Intel Stock Plunges 30% as Weak PC Demand and AI Costs Trigger Global Chip Selloff
Intel warned that AI-related chip shortages are pushing up costs and expects fourth-quarter revenue to fall more than 20%, sending shares down as much as 25%.
- Intel shares plunged approximately 25% in premarket trading on Friday after the chipmaker issued a bleak fourth-quarter outlook, citing persistent weakness in the personal computer market and challenges from the artificial intelligence boom.
- Rising memory prices, driven by demand for artificial intelligence infrastructure, are making computers more expensive and curbing consumer demand, forcing Intel to navigate significant manufacturing constraints and supply shortages.
- While Intel reported $16.5 billion in third-quarter revenue, the company forecast fourth-quarter earnings of $0.25 per share, falling short of the approximately $0.44 estimate, with a two-week Israeli plant shutdown reducing revenue by about $300 million.
- The selloff erased more than $123 billion in market value, deepening a broader retreat in technology stocks as investors reacted negatively to the forecast and heavy spending required for artificial intelligence infrastructure.
- CEO Lip-Bu Tan faces a difficult turnaround effort, as Intel warned PC market weakness could persist through 2027 while the company invests heavily to expand production capacity and capitalize on its growing data center business.
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The fall of PCs and supply problems hit the company.The AI boom boosts servers and encourages components of notebooks.The cost of making chips and Moore's Law help understand the change in the industry of the historic "Intel Inside".
The Economic Times
Times of IndiaIntel stock plunges 30% as weak PC demand and AI costs trigger global chip selloff
Intel shares plunged 30% after the chipmaker issued a weak fourth-quarter revenue forecast and warned of negative cash flow for the year. The warning triggered a global semiconductor selloff, with Nvidia, AMD and other chip stocks declining as weak PC demand and rising AI infrastructure costs weighed on sentiment.
Intel Shares Tumble After Earnings Warning, Raising Questions About Trump Administration’s $8.9 Billion Investment
SANTA CLARA, Calif. (VINnews) – Intel shares were sliding approximately 25% in premarket trading Friday, putting the chipmaker on track for what could become its largest single-day decline, after a disappointing financial outlook overshadowed stronger-than-expected third-quarter earnings. The sharp decline followed Intel’s earnings report released after Thursday’s market close. Investors reacted negatively to the company’s […]
Business Insider
BizTocIntel shares plunge 25% as it warns that the AI boom's thirst for chips is hurting business
Intel CEO Lip-Bu Tan warned of one of the "most significant supply shortages in history."Akio Kon/Bloomberg via Getty ImagesIntel shares dropped as much as 25% in premarket trade Friday after disappointing earnings.The chipmaker said it expects revenue to drop in Q4 as AI demand squeezes the supply of chips for PCs.Computing is facing "one of the most significant supply shortages in history," its CEO said.Intel shares plummeted as much as 25% in…
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