Intel stock plunges 20% as weak forecast disappoints investors

Intel's stock plunged over 20% in after-hours trading after the company's business forecast disappointed investors, wiping out more than a fifth of its market value. Intel forecast quarterly revenue of $15-16 billion, below analyst expectations of $17 billion, and adjusted earnings per share of 25 cents versus the expected 43 cents. The company cited surging memory prices reducing PC sales and supply chain issues for data center chips. Intel expects the PC market to shrink 10% in 2027 following a 12% decline this year. Memory prices have soared due to AI data center demand, and Intel's CEO acknowledged the company couldn't fully meet demand due to raw material shortages and a temporary factory closure in Israel.