Intel shares fell nearly 30% to $65.76 after the company forecast fourth-quarter revenue of $15 billion to $16 billion, below Wall Street’s $17.07 billion estimate. The selloff erased more than $146 billion in market value. Intel also forecast adjusted earnings of $0.25 per share, versus analysts’ $0.43 estimate.
The forecast followed a third quarter in which revenue rose 21% from a year earlier to $16.5 billion. Intel said demand for AI server processors was strong, but manufacturing and packaging shortages were limiting production. It expects the PC market to contract through 2027, and CFO Dave Zinsner said the company probably would not generate positive free cash flow in 2027.
