Intel shares fell sharply in extended trading on Thursday after the chipmaker issued a weak fourth-quarter forecast. The company blamed continued softness in the global PC market.
Intel said it expects adjusted earnings of 25 cents per share on revenue between $15 billion and $16 billion for the current quarter. Analysts polled by LSEG had expected revenue of $17.1 billion and earnings of 43 cents per share.
Third-quarter revenue rose 21% from $13.7 billion a year earlier, according to the company's press release. Revenue in the client computing and physical AI group fell 5% to $8.1 billion, missing estimates. Data center and AI revenue rose 78% to $7.3 billion.
Finance chief David Zinsner said in the release: "We see the PC slowdown continuing at least through the first half of next year, but we remain optimistic about the opportunities across our broader portfolio."
CNBC reported that Counterpoint Research said global PC shipments fell 4% in the second quarter from a year earlier, due to soaring costs for memory and other components.
Intel's forecast also reflects an explosion at a fab in Israel earlier this month that killed two workers and seriously injured a third. Zinsner told Reuters the incident will cost the company about $600 million in lost revenue over two quarters. He said the company plans to start ramping up production there by the end of the week.
Intel stock is up about 150% this year but down roughly 23% in October, according to the report, which cites concerns about the size of the AI infrastructure buildout.