Intel shares dropped more than 20% in late trading on Thursday, October 30, 2026, after releasing a weaker-than-expected intel revenue forecast for the fourth quarter. The Next Web reports that the company expects fourth-quarter revenue to land between $15B and $16B, which falls short of the $17B analysts anticipated on average.
Key takeaways
- Intel projects fourth-quarter revenue of $15B to $16B, missing the $17B expected by analysts.
- Shares dropped more than 20% in late trading following the weaker sales outlook.
- A memory chip shortage has pushed up prices and reduced demand for laptops and desktops.
- Third-quarter revenue rose 21% to $16.5B, driven by growth in data centre and AI sales.
What is causing the memory shortage and PC slump?
PC makers are struggling with a shortage of memory chips that has pushed up prices and cut demand for laptops and desktops, according to The Next Web. Intel expects the PC market to shrink 12% this year and another 10% in 2027. Research firm TrendForce noted in September that PC makers have hit their limit on what they can pay for memory.
Chief executive Lip-Bu Tan told Bloomberg that memory pricing went up a lot, adding that it will be a very severe issue to all of us in 2027. Tan also pointed to supply problems in the data centre business, noting that raw material shortages and a factory shutdown in Israel held back that unit.
How did the third quarter perform?
Despite the weak outlook, the third quarter itself was strong. The Next Web reports that revenue rose 21% to $16.5B, while data centre and AI sales jumped 78% to $7.3B. Meanwhile, PC chip sales fell 5% to $8.1B. This followed the fastest growth in more than a decade during the previous quarter, and the stock had more than doubled this year as investors bet the company would gain from AI.
What happens next?
The company faces a challenging road ahead with the ongoing memory shortage and data centre hurdles. Intel expects adjusted earnings of 25 cents a share for the fourth quarter, compared to estimates of 43 cents. The firm recently sold $15B in shares to fund its turnaround under Tan, but the immediate market reaction shows deep investor concern over the near-term supply chain constraints.
Frequently asked questions
Intel forecast fourth-quarter revenue of $15B to $16B, which is below the $17B that analysts expected.
Intel shares fell more than 20% in late trading on Thursday after the sales forecast missed Wall Street's estimates.
PC makers are struggling with a shortage of memory chips that has pushed up prices and cut demand for laptops and desktops.
Third-quarter revenue rose 21% to $16.5B, with data centre and AI sales jumping 78% to $7.3B and PC chip sales falling 5% to $8.1B.
Chief executive Lip-Bu Tan told Bloomberg that memory pricing went up a lot and predicted it is going to be a very severe issue to all of us in 2027.
Based on reporting by The Next Web. Read the original article
