Intel shares fell about 16% in extended trading on Thursday after the chipmaker forecast weak fourth-quarter results. The company blamed continued softness in the global PC market.
Intel's third-quarter revenue rose 21% from $13.7 billion a year earlier, the company said in a press release. Revenue in its client computing and physical AI group fell 5% from a year earlier to $8.1 billion, missing estimates. Data center and AI revenue jumped 78% to $7.3 billion.
For the current quarter, Intel expects adjusted earnings of 25 cents per share on revenue between $15 billion and $16 billion. Analysts polled by LSEG had expected $17.1 billion in revenue and 43 cents per share.
Finance chief David Zinsner said in the release, "We see the PC slowdown continuing at least through the first half of next year." He told Reuters that a fab explosion in Israel earlier this month will cost about $600 million in lost revenue over two quarters.
Counterpoint Research reported that global PC shipments fell 4% in the second quarter from a year earlier, due to rising memory and component costs.