Intel shares drop 17% on weak Q4 forecast despite AI growth

Intel shares plunged 17% in after-hours trading Thursday after the company issued weaker-than-expected fourth-quarter guidance, overshadowing stronger profits and rapid growth in its data center and artificial intelligence business. The stock fell to $75.84 after Intel reported third-quarter revenue of $16.5 billion, up 21% year-over-year but slightly below Wall Street's $16.6 billion forecast. Adjusted earnings per share hit 52 cents, beating analyst estimates of 41 cents. The company cited weaker personal computer demand and production disruptions following a fatal explosion at its Israel facility. Intel expects fourth-quarter adjusted earnings of 25 cents per share on revenue between $15 billion and $16 billion, versus analyst projections of 45 cents and $17.3 billion. Data center and AI revenue surged 78% to $7.3 billion, but PC segment revenue fell 5% to $8.1 billion, missing expectations.