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

Intel shares fell 17% in after-hours trading Thursday after the chipmaker issued a weaker-than-expected fourth-quarter forecast, overshadowing stronger earnings and rapid growth in its data center and AI businesses. Intel reported third-quarter revenue of $16.5 billion, up 21% year-over-year but slightly below Wall Street's $16.6 billion expectation. Adjusted earnings per share of 52 cents beat analyst estimates of 41 cents. The company's Q4 outlook disappointed investors, citing weaker-than-expected personal computer demand and production disruptions following a deadly explosion at its Israeli facility earlier this month. Intel's data center and AI revenue surged 78% year-over-year to $7.3 billion, beating expectations, but PC revenue fell 5% to $8.1 billion. The company forecasts Q4 adjusted EPS of 25 cents on revenue of $15-$16 billion, well below analyst projections of 45 cents and $17.3 billion.