Intel's stock fell sharply in after-hours trading following the company's Thursday guidance for fourth-quarter revenue and results that missed analyst expectations, according to Bloomberg.
The company forecast fourth-quarter revenue of $15–16 billion, while analysts on average had expected $17 billion and some estimates exceeded $18 billion. Adjusted earnings per share (EPS) are expected to be $0.25, well below Wall Street's $0.43 consensus.
Those figures triggered a decline of more than 22% in Intel's shares in after-hours trading. The drop is notable given that the stock had already more than doubled year-to-date as investors had hoped Intel would be a major beneficiary of the artificial intelligence boom.
Causes of the weaker outlook
Intel attributed the disappointing guidance primarily to softer demand for personal computers (PCs) and to supply constraints weighing on its profitable data-center business. Management expects the PC market's weakness to persist: the company projects about a 12% decline this year and anticipates a further roughly 10% contraction in 2027.
Shortages of memory chips and rising component costs have hurt laptop and desktop manufacturers, reducing PC sales. Building AI infrastructure has also increased demand for memory in data centers, pushing up prices for memory produced by Samsung, SK Hynix and Micron and in turn raising costs for computer makers.
Data-center business impacted by supply disruptions
Chief Executive Officer Lip-Bu Tan said the data-center business could have delivered stronger results if not for shortages of certain raw materials and the shutdown of one of Intel's Israeli factories. Management acknowledged the company was not able to fully meet some customer orders because of these constraints.
Tan also warned that higher memory prices will remain a significant industry challenge into 2027.
Why this matters
Intel's shortfall in fourth-quarter guidance highlights both structural market weakness (declining PC demand) and short-term operational and supply issues (memory shortages, factory downtime). The market reaction was sharpened by prior investor expectations that Intel would capture substantial upside from AI-related infrastructure spending.
Closing note
The reporting in this article is based on Bloomberg's coverage. An AI assistant contributed to preparing this article; the final text was edited and verified by a journalist.
