Intel Stock Plummets After Warning of PC Market Weakness

Intel Corporation reported third-quarter revenues of $16.5 billion, a 20% year-over-year increase that met market estimates. The company saw adjusted net income surge 169% to $2.8 billion and improved non-GAAP gross margins to 44.1%.

Despite these gains, the company's stock price plunged after management warned of accelerating weakness in the PC market. Intel provided fourth-quarter revenue guidance of $15 billion to $16 billion, falling significantly below market consensus. The total addressable market for PCs is projected to decline by 12% in 2026 and another 10% in 2027.

To offset these headwinds and supply chain constraints, Intel is pivoting toward its data center and AI (DCAI) business. Revenue in that sector is projected to grow mid-teens sequentially in the fourth quarter. The company expects long-term growth in AI and data centers to drive revenue and margin increases through fiscal year 2028, with an adjusted earnings per share projection of $3.14 for that year.