Intel stock falls 16-17% as sales forecast disappoints

Summarised from 2 outlets · 3 reports · Updated 29 Oct, 21:09 · Archive

Intel shares fell 16-17% after the chipmaker issued a weak quarterly forecast, citing PC market slowdown.

Intel shares fell 16-17% after the chipmaker issued a weak fourth-quarter forecast, citing softness in the global PC market. For the current quarter, Intel expects adjusted earnings per share of 25 cents on revenue between $15bn and $16bn. Analysts had been expecting revenue of $17.1bn and EPS of 43 cents.

In the third quarter, Intel's revenue climbed 21% to $13.7bn from a year earlier. However, revenue in its client computing and physical AI group fell 5% to $8.1bn, missing estimates. Data center and AI revenue jumped 78% to $7.3bn, though the strong AI performance has not offset weakness in PCs.

Intel finance chief David Zinsner said the company sees the PC slowdown continuing at least through the first half of next year but remains optimistic about opportunities across its broader portfolio. The company said it plans to make disciplined investments in capacity and working capital to increase supply and support future growth.

CNBC reports that Intel's forecast also reflects the effects of an explosion at a fabrication plant in Israel earlier this month, which killed two workers and seriously injured a third. Zinsner said the incident will cost the company about $600m in lost revenue over two quarters, with the company planning to start ramping up production there by the end of the week.

Intel stock falls 16-17% as sales forecast disappoints — Image: Financial Times

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How it is being reported

Intel plunges on a major guidance miss. What went wrong — and how to proceedFurther downside is certainly possible, but selling now won't erase the losses we've taken.CNBC · 30 Oct, 01:06
Intel stock plunges 16% as chipmaker blames PC slowdown for weak guidanceIntel has been a Wall Street darling this year due to its emergence as a player in AI, but the company is being weighed down by a struggling PC market.CNBC · 29 Oct, 20:47
Intel stock falls 17% as it forecasts weaker chip salesLower-than-expected sales forecasts dent chipmakers’ turnaround prospectsFinancial Times · 29 Oct, 20:02

In this story: Intel · LSEG · David Zinsner · Israel

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