Intel shares plunge 21% after Q3 profit drop and weak PC sales

Intel's stock plunged over 21% in after-hours trading Thursday following its Q3 2026 earnings report, which showed GAAP net profit fell 18% year-over-year despite revenue growth. Revenue rose 21% to $16.51 billion, but GAAP net income dropped to $3.32 billion from $4.06 billion. Data center and AI revenue surged 78%, while PC business declined 5%, with weakness expected into early 2027. The net profit decline was driven by lower non-operating income, including interest and asset-sale gains. Foundry revenue grew 58% but remained loss-making. Intel forecasts Q4 revenue of $15-16 billion with lower gross margins.