Intel Shares Plunge 29% After Weak Revenue Forecast
Intel Corporation shares suffered their largest one-day loss since the 1970s after the company issued a fourth-quarter revenue forecast that missed analyst estimates.
Shares of Intel Corporation plummeted 29% on Friday, marking the company's steepest one-day decline since the 1970s. The sell-off followed a fourth-quarter revenue forecast of $15 billion to $16 billion, which fell $1 billion to $2 billion short of analyst expectations.
Third-quarter results showed mixed performance. Revenue rose 21% to $16.5 billion, supported by a 78% surge in data center and AI revenue. However, client computing revenue decreased by 5%. The company's foundry business grew revenue by 58% to $6.7 billion but continues to operate at a loss of $1.85 billion.
To support data center products, Intel is redirecting some factory output in Oregon from 18A wafers to the older Intel 3 process. CEO Lip-Bu Tan noted that the company has not yet secured a flagship client for its leading-edge chips, though he expects to announce a few customers over the next two quarters. CFO David Zinsner predicted the current PC downturn will persist for at least six months into next year.
