Intel shares slide premarket as fourth-quarter guidance trails forecasts

what happened

Intel shares dropped roughly 25% in premarket trading after third-quarter results, according to gurufocus.com. Non-GAAP earnings per share came in at $0.52, versus analysts' consensus of $0.41. Revenue reached $16.5 billion, nearly matching the $16.56 billion estimate. Sales grew 21%, with the Data Center and AI unit up 78% to $7.3 billion, while Client Computing and Physical AI fell 5% to $8.1 billion.

The outlook was the main disappointment. Intel expects fourth-quarter revenue of $15 billion to $16 billion, about $1.8 billion under Wall Street forecasts, and non-GAAP EPS of $0.25. Gross margin is set to slip to 38.0%. An accident at the company's Israel plant will also cost about $300 million in revenue. Client revenue is projected to drop more than 20% from the previous quarter as PC makers reduce inventory.

CEO Lip-Bu Tan blamed the PC weakness on higher memory prices and tight IT budgets. CFO David Zinsner said the company is not optimistic about next year when it comes to memory.

why it matters

The key takeaway for markets is that the PC slowdown could last into mid-2027, and rising memory costs weigh on both chipmakers and device buyers. Investors will watch whether data center growth can offset the decline in the client business.

market impact

Intel shares: weak guidance and a slowing PC market pressure the stock

• ▼Intel shares pressure down — weak fourth-quarter outlook and expected PC market decline

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