Intel shares fell more than 20% in after-hours trading: fourth-quarter revenue forecast of $15–16 billion against $17.1 billion expected
Prepared by Sintelligent with the help of SI. Published in SI: . Updated: .
Demand for SI in data centers is growing, but expensive memory is weighing on the PC market, and Intel forecasts revenue below expectations.
In the third quarter Intel's revenue rose 21% year on year (from $13.7 billion) to about $16.5 billion: data center and SI revenue was up 78% to $7.3 billion, while the client PC and physical SI group fell 5% to $8.1 billion, below analysts' expectations. For the fourth quarter the company forecasts revenue of $15–16 billion and adjusted earnings of 25 cents a share; analysts polled by LSEG expected $17.1 billion and 43 cents. Chief financial officer David Zinsner expects the PC market slowdown to last at least through the first half of next year. According to The Next Web's account of Bloomberg, Intel ties the weak demand to a memory shortage that is making computers more expensive, and expects the PC market to shrink 12% this year and another 10% in 2027; chief executive Lip-Bu Tan told Bloomberg that rising memory prices will be a very serious problem for the industry in 2027.
Sources 2