Intel shares fall about 30% after fourth-quarter forecast misses estimates; third-quarter revenue up 21%

Intel shares were down about 30% at $64.02 as of 17:52 GMT on Friday 30 October, according to Yahoo Finance data, after the chipmaker issued a fourth-quarter forecast below analysts’ estimates on Thursday.

Intel said third-quarter revenue was $16.5 billion, up 21% from a year earlier. Adjusted (non-GAAP) earnings were 52 cents a share, against 40 cents expected by analysts polled by LSEG, CNBC reported. Net income attributable to Intel under standard accounting fell 18% to $3.3 billion.

Data centre and AI revenue rose 78% to $7.3 billion, while revenue from the PC chip unit fell 5% to $8.1 billion. Intel Foundry revenue rose 58% to $6.7 billion, and the unit reported an operating loss of about $1.9 billion, the company said.

For the fourth quarter, Intel forecast revenue of $15 billion to $16 billion and adjusted earnings of 25 cents a share. Analysts had expected $17.1 billion and 43 cents, according to LSEG data cited by CNBC.

“We see the PC slowdown continuing at least through the first half of next year,” chief financial officer David Zinsner said. Chief executive Lip-Bu Tan said demand for Intel’s processors “remains robust” despite “near-term headwinds across the PC industry.” CNBC reported that Zinsner said an explosion at an Intel plant in Israel earlier this month would cost about $600 million in lost revenue over two quarters.