Intel stock plunges 21% as chipmaker blames PC slowdown for weak guidance
Intel 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.
TL;DR
- Intel shares fell more than 20% after issuing a weak fourth-quarter forecast.
- The chipmaker cited ongoing softness in the global PC market as a primary reason for the lowered outlook.
- Third-quarter earnings and revenue met analyst expectations, with significant growth in data center and AI revenue.
- Revenue in the client computing group fell 5% year-over-year.
- An explosion at an Israeli fab is expected to cost Intel about $600 million in lost revenue.
- Intel's forecast anticipates continued PC slowdown at least through the first half of next year.
- The company is making progress on its advanced chips, including the 18A, but currently lacks major external customers for its new chips.
- Intel completed a $23 billion equity offering in August.