Intel Shares Fall 16% as PC Weakness Pressures Fourth-Quarter Outlook

Intel’s shares fell 16% in after-hours trading after the chipmaker released quarterly results and an outlook that underscored weak PC processor demand and rising component costs.

The company projected fourth-quarter revenue of $15 billion to $16 billion and adjusted earnings of 25 cents per share. Intel also forecast a gross margin of 38%, down from 43% in the third quarter, indicating less revenue left after production costs.

Intel posted third-quarter revenue of $16.5 billion, up 21% from a year earlier. Its Client Computing Group, which supplies PC processors, generated $8.1 billion, a 5% decline. Revenue in the Data Center and AI division rose 78% to $7.3 billion.

Memory chip shortages have increased component prices, weighing on laptop and desktop shipments and limiting a recovery in the PC market. Supply constraints also slowed deliveries of higher-end components, even as demand for data center and AI products expanded.

The results show a split in Intel’s business: data center revenue grew sharply while the PC-focused unit contracted. Intel Foundry revenue climbed 58% to $6.7 billion as the company sought outside chip-design customers to help cover factory costs.