Intel Shares Plunge 22% After Disappointing Forecast

Quick Answer: Intel shares plunge 22% in after-hours trading in the US after the company forecast revenue of US$15 billion to US$16 billion for the current quarter, below the around US$17 billion analysts expected. Its forecast adjusted earnings per share of 25 cents also fell well short of the 43 cents the market expected. Shareholders now face a slowdown in PC sales driven by soaring memory prices, with no improvement expected through the first half of 2027.

Intel shares plunge 22% after the chipmaker’s guidance disappointed the market. The forecast points to weaker demand for PCs, not just a one-off miss.

The shares fell around 22% in after-hours trading in the US. Investors had priced in a stronger outlook.

Why Did Intel Shares Plunge 22% After Its Forecast?

Intel shares plunge 22% after disappointing forecast — Intel’s weak forecast hit its US-traded shares in after-hours trading.

Both the revenue and earnings guidance missed the market. The double miss hit the stock hard.

How Far Below Expectations Is Intel’s Forecast?

Revenue guidance: US$15 billion to US$16 billion, versus around US$17 billion expected
Adjusted EPS guidance: 25 cents, versus 43 cents expected
Latest quarter revenue: US$16.5 billion, up 21% year-on-year, in line with expectations
Latest quarter net profit: US$3.3 billion, down 18%

The latest quarter looked steady on revenue. Net profit still fell 18% to US$3.3 billion, which shows the pressure on margins was already building.

Why Are Memory Prices Hurting Intel’s PC Business?

Intel’s CFO David Zinsner said business had slowed for several weeks. High memory prices were discouraging consumers from buying computers.

Zinsner said there would be no improvement at least through the first half of 2027. CEO Lip-Bu Tan said the entire market was affected, and memory prices would remain a major problem throughout next year.

Memory prices have surged in recent months amid strong demand to expand AI data centres.

Will the PC Market Shrink Again in 2027?

Intel expects the PC market to shrink by 10% in 2027. That follows a projected decline of 12% this year.

Two straight years of contraction would weigh on any chipmaker that depends on PC volumes.

Can Intel’s AI Demand Offset the PC Slump?

Intel has benefited from the AI boom through demand for its processors. The company, however, has been unable to meet that demand adequately, Tan said.

Supply constraints are the bottleneck. Reasons include shortages of certain raw materials and the temporary closure of a factory in Israel. Supply chain problems are also affecting chips for data centres, where demand remains strong.

Analysts note that the constraint is supply, not demand. Investors may want to watch whether Intel can restore output before the memory cycle turns.

What Does Intel’s Slump Mean for Bursa Malaysia Investors?

Intel’s shares trade in the US, so Bursa Malaysia investors gain exposure only if they own US-listed stocks. The read-across is indirect, but PC demand and memory costs affect the wider tech supply chain.

Investors tracking global tech earnings can use the AI Stock Analysis for Malaysians guide to follow forecast revisions.

Key Takeaways

Intel shares fell around 22% in after-hours trading in the US after a weak forecast.
Revenue guidance of US$15 billion to US$16 billion trailed the around US$17 billion expected.
Adjusted EPS guidance of 25 cents trailed the 43 cents expected by the market.
Intel expects the PC market to shrink 10% in 2027, after a projected 12% decline this year.
No improvement is expected through the first half of 2027, according to CFO David Zinsner.

Disclaimer: This article is for information only and is not investment advice. Do your own research before making any investment decision.

Frequently Asked Questions

Why did Intel shares drop 22%?

Intel shares fell around 22% in after-hours trading in the US after forecasting revenue of US$15 billion to US$16 billion, below about US$17 billion expected. Slowing PC sales caused by high memory prices and chip supply problems drove the weak outlook.

What is Intel’s adjusted EPS forecast?

Intel forecast adjusted earnings per share of 25 cents for the current quarter. That is 18 cents below the market expectation of 43 cents.

When will memory prices stop hurting Intel?

CFO David Zinsner said there would be no improvement at least through the first half of 2027. CEO Lip-Bu Tan said memory prices would remain a major problem throughout next year.

Is Intel listed on Bursa Malaysia?

The shares in this report trade in the US, and the source does not mention a Bursa Malaysia listing. Check with your broker about access to US-listed shares before trading.

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