Intel shares plummet more than 20% following weak guidance blamed on PC market slowdown
Intel shares dropped over 22% following a weak fourth-quarter revenue forecast, despite the company beating third-quarter earnings expectations. The decline is attributed to a persistent slowdown in the PC market, which offset strong growth in the data center and AI segments.
Why it matters
Intel's performance reflects broader challenges in the semiconductor industry as demand for consumer PCs remains sluggish compared to the booming AI infrastructure sector.
Intel Corp. somehow managed to beat expectations despite facing softness in the personal computer market, but its weak forecast for the current quarter sparked panic among investors, and its stock plunged more than 22% in late trading today.
The computer chipmaker reported third-quarter earnings before certain costs such as stock compensation of 52 cents per share, easily beating Wall Street’s guidance of 40 cents per share. Revenue for the quarter rose 21% from a year earlier, to $16.51 billion, edging past the Street’s target of $16.5 billion. All told, the company posted net income of $3.3 billion, down from the $4.1 billion it earned in the same period last year.
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