Intel Plunges 21% on Weak PC Outlook — SkimNews
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- Intel reported third-quarter adjusted earnings of 52 cents per share, beating the 40-cent LSEG consensus, while revenue of $16.51 billion nearly matched estimates and rose 21% year over year from $13.7 billion.
- Intel projected fourth-quarter adjusted earnings of 25 cents on revenue of $15 billion to $16 billion, versus LSEG expectations of 43 cents and $17.1 billion; shares fell 21% in extended trading, and before the report the stock had climbed about 150% this year despite being down roughly 23% in October.
- Intel reported a 5% year-over-year decline in client-computing and physical-AI revenue to $8.1 billion, which missed estimates, even as data-center and AI revenue jumped 78% to $7.3 billion.
- Counterpoint Research reported that global PC shipments fell 4% year over year in the second quarter because memory and other component costs soared, while Intel finance chief David Zinsner said the PC slowdown would continue through at least the first half of next year.
- Intel said an explosion at its fab in Israel killed two workers, seriously injured a third and caused an extended shutdown affecting 10-nanometer chip shipments, costing about $600 million in revenue over two quarters.
- Lip-Bu Tan said Intel was in high-volume production of the 18A chip at a new Arizona fab but had no major external customers for the new chips; he said a couple of customers would be ready to announce in the next two quarters and that the company was making tremendous progress on 14A.
- Intel completed a $23 billion equity offering in August after the Trump administration took a 10% stake and Nvidia and Softbank invested billions in the company last year.
Why it matters: Intel shareholders bore the immediate hit: the stock fell 21% after revenue guidance of $15 billion to $16 billion came in at least $1.1 billion below the $17.1 billion consensus. Intel is now balancing 78% data-center/AI growth against a PC slowdown through the first half and $600 million in fab-related lost revenue.
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