Intel stock plunges 20% as weak forecast hits chipmaker

Intel's stock plummeted over 20% in after-hours trading after its business forecast disappointed investors. The chipmaker cited rising memory prices reducing PC sales and supply chain issues for data center chips as key factors. 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, with Intel's CEO Lip-Bu Tan saying the PC market will shrink 10% in 2027. Intel's revenue rose 21% year-over-year to $16.5 billion last quarter, but profits fell 18%.