Intel stock falls more than 20% after quarterly outlook misses estimates
The chipmaker projected adjusted earnings of 25 cents a share, compared with analysts’ expectations of 43 cents.
Intel projected US$15 billion to US$16 billion in fourth-quarter revenue, falling short of the US$17 billion average analyst estimate. Bloomberg reported that the chipmaker’s shares dropped more than 20% during late trading following the forecast.
The outlook comes as higher memory chip prices weaken demand for desktop and laptop computers. A shortage has increased costs for PC manufacturers, and research firm TrendForce said in September that they had reached the limit of what they could pay for memory.
Chief executive Lip-Bu Tan told Bloomberg he expected memory pricing to become a severe problem in 2027. He also said shortages of certain raw materials and the shutdown of a factory in Israel had prevented the data center business from performing better.
Intel’s third-quarter results showed revenue reaching US$16.5 billion, up 21%. Sales from data centers and AI increased 78% to US$7.3 billion, while the PC chip business recorded a 5% decline to US$8.1 billion.
The company recently raised US$15 billion by selling shares to finance its turnaround under Tan.
