Intel shares plunge 20% after weak PC-guided guidance
· Business · CNBC, Barron's, New York Times
Intel reported adjusted earnings per share of 25 cents and revenue of $16.51 billion in the third quarter, beating analyst expectations, but its forecast for the current quarter fell short at $15–16 billion. The chipmaker warned the PC slowdown will continue at least through the first half of next year, citing softer client computing demand. Intel’s finance chief David Zinsner said the company remains optimistic about its broader portfolio and will keep investing in capacity. Shares dropped sharply in extended trading after the guidance, reversing earlier gains driven by strong data‑center and AI revenue growth. Global PC shipments declined 4% year‑over‑year in the second quarter, pressured by rising memory costs, according to Counterpoint Research.
Why it matters
The guidance warning and the PC‑specific downturn hit Intel investors, wiping out roughly $100‑billion in market value, and raised concerns about the health of the broader tech supply chain. The slide also signals a potential drag on related sectors such as memory and component suppliers that rely on PC demand. Investors and analysts will now watch whether AI‑driven growth in data‑center revenue can offset the PC weakness in future quarters.
Read the original report — CNBC
Join us on Telegram
Breaking news the moment it lands. At 10,000 members we ship the Android app.