Intel Q4 guidance disappoints, shares fall 23%

Odaily reports: Intel released its third-quarter financial results for the period ended September 30, with revenue of $16.51 billion, up 21% year-over-year, and adjusted earnings per share of $0.52, both beating market expectations of $16.44 billion and $0.39. However, due to weak fourth-quarter guidance, Intel's stock fell 23%.

Intel expects fourth-quarter revenue of $15 billion to $16 billion, with adjusted earnings per share of $0.25, down from $0.52 in the third quarter. CEO Lip-Bu Tan said that due to factors including rising memory prices, tight supply, and limited IT budgets, the PC market slowdown is expected to last at least through the first half of 2027. In addition, a previous accident at its Israel factory that caused a prolonged production halt will also affect fourth-quarter shipments of 10nm server chips.

Tan also noted that AI infrastructure buildout is driving strong demand for server CPUs, with the data center business achieving its strongest revenue growth in 15 years in the third quarter. Intel will continue to expand capacity and increase investment in future products and advanced process technologies. (gamesbeat)