Intel shares plunge 23% on cash burn and supply constraints

Intel shares plunged 23% in after-hours trading Thursday after the chipmaker warned it would burn cash this year due to a faltering PC market, manufacturing bottlenecks, and heavy spending on production expansion. The company forecast fourth-quarter revenue between $15 billion and $16 billion, below analysts' average estimate of $17.07 billion, and adjusted profit of 25 cents per share versus expectations of 43 cents. An October explosion at Intel's Israel plant is expected to erase roughly $600 million in revenue over two quarters and reduce AI server chip supplies. Intel expects weak PC demand to persist through the first half of 2027, and its gloomy outlook dragged down shares of Nvidia, Broadcom, AMD, Micron, Qualcomm, and Arm Holdings by 1% to 6% in extended trading. CEO Lip-Bu Tan acknowledged failing to meet strong customer demand amid manufacturing shortages and an unprecedented memory crunch.