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

Intel shares plunged 17% in after-hours trading Thursday after the chipmaker issued weaker-than-expected fourth-quarter guidance, overshadowing solid earnings and rapid growth in its data center and AI business. 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 of 52 cents beat analyst estimates of 41 cents. The company forecast Q4 adjusted EPS of 25 cents on revenue between $15 billion and $16 billion, versus expectations of 45 cents and $17.3 billion. The weak outlook stems from softer PC demand and production disruptions following a deadly explosion at an Israeli plant. Data center and AI revenue surged 78% to $7.3 billion, but PC segment revenue fell 5% to $8.1 billion, missing estimates. Intel shares remain up about 150% year-to-date despite Thursday's decline.