Intel stock plunges 20% as chipmaker blames PC slowdown for weak guidance
The chipmaker said fourth-quarter profit and revenue will trail Wall Street estimates as PC demand stays weak and supply problems hit its data center business.
- On Thursday, Intel shares plunged after the chipmaker issued a weak fourth-quarter forecast, citing persistent softness in the global PC market. The company expects revenue between $15 billion and $16 billion.
- While Intel reported third-quarter revenue of $16.51 billion, climbing 21% from $13.7 billion a year earlier, results missed analyst projections of $17.1 billion from LSEG. Earnings per share reached 52 cents, exceeding the expected 40 cents.
- Revenue in Intel's client computing and physical AI group fell 5% to $8.1 billion, missing estimates. Data center and AI revenue jumped 78% to $7.3 billion, underscoring the company's shift toward high-growth infrastructure.
- Intel CEO Lip-Bu Tan noted "robust demand for CPUs" despite near-term headwinds. Finance chief David Zinsner expects the PC slowdown to continue through the first half of next year.
- Expanding its foundry business, Intel recently installed the first structural truss at its Ohio chip fab. Oracle announced an expanded deal to deploy the chipmaker's next-generation Xeon server processors, bolstering data center capacity.
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Intel shares tumble after hours, hit by chip supply woes
Intel shares plunged 23% in after hours trading on Wall Street last night after the chip maker warned it would burn cash this year due to the faltering PC market, bottlenecks in manufacturing and heavy spending on expanding production.
Although the American computer and chip company Intel delivered solid financial results for the quarter, the stock plunged after the close.
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U.S. semiconductor company Intel's operating profit for the third quarter of this year surged 3.7-fold compared to the same period last year. The improved performance was driven by a nearly 80% increase in revenue from its data center and AI businesses, fueled by rising demand for CPUs for artificial intelligence (AI) servers. However, the outlook for the fourth quarter fell short of market expectations due to a combination of factors, including…
The chip giant Intel seemed to be on the way to recovery after a long stretch of thirst. But now high storage prices ensure that fewer computers are bought - and Intel suffers from it.
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