Intel stock plunges 20% after weak forecast as memory prices hit PC sales

Intel's stock plummeted over 20% in after-hours trading after its quarterly forecast disappointed investors, with the company projecting revenue between $15 and $16 billion versus analyst expectations of $17 billion. Intel cited surging memory prices reducing PC purchases and supply chain issues for data center chips as key factors. Adjusted earnings per share forecast of 25 cents fell far short of the 43-cent market expectation, with CFO David Zinsner noting weakness persisting into at least the first half of 2027. The memory price surge stems from high demand for AI data center expansion, which Intel couldn't fully serve due to raw material shortages and a temporary Israeli factory closure. Intel expects the PC market to shrink 10% in 2027 after a 12% decline this year.