Intel stock plunges 20% as weak forecast disappoints investors

Intel's stock plummeted over 20% in after-hours trading after the company's business forecast deeply disappointed investors. The chipmaker is struggling with declining PC sales due to soaring memory prices and supply chain issues for data center chips. Intel projected quarterly revenue of $15-16 billion, below analyst expectations of $17 billion. Adjusted earnings per share forecast of 25 cents fell far short of the 43-cent market estimate. CFO David Zinsner noted weakness persisting through at least the first half of 2027. Memory prices have surged due to AI data center demand, which Intel also benefits from but couldn't fully serve due to raw material shortages and a temporary Israeli factory closure. CEO Lip-Bu Tan expects the PC market to shrink 10% in 2027 after a 12% decline this year.