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

Intel shares fell 17% in after-hours trading Thursday after the chipmaker issued weaker-than-expected fourth-quarter guidance, overshadowing an earnings beat and strong growth in its data center and AI business. The company reported third-quarter revenue of $16.5 billion, up 21% year-over-year but slightly below Wall Street's $16.6 billion estimate. Adjusted earnings per share of 52 cents exceeded analyst forecasts of 41 cents. Intel guided fourth-quarter revenue to $15–$16 billion and EPS of 25 cents, versus expectations of $17.3 billion and 45 cents. Intel attributed the weak outlook to softer PC demand, exacerbated by rising memory prices, and production disruptions following a deadly explosion at its Israeli facility earlier this month. Data center and AI revenue surged 78% to $7.3 billion, but PC segment revenue fell 5% to $8.1 billion, missing estimates.