Intel shares plunge 25% as memory costs and weak PC demand hit forecast

Intel shares plunged up to 25% in premarket trading Friday after the chipmaker warned of a weaker market due to supply shortages tied to the AI boom, with shares set to open at $68.48, down from $92.07. Intel reported third-quarter revenue of $16.5 billion, up 20% year over year, but forecast fourth-quarter revenue of $15 billion to $16 billion and earnings per share of $0.25, down from $0.52. Rising memory prices from AI-driven demand have made PCs costlier, prompting computer-makers to order fewer chips, with Intel's client-computing revenue down 9% quarter over quarter. CEO Lip-Bu Tan cited "one of the most significant supply shortages in history," and Intel expects global PC sales to decline about 12% this year and 10% in 2027. Data-center revenue rose nearly 80% to $7.3 billion, though a two-week Israeli plant shutdown will cut fourth-quarter revenue by $300 million.