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

Intel's stock plunged over 20% after its business forecast disappointed investors, driven by high memory prices reducing PC sales and supply chain issues in data center chips. The company projected quarterly revenue of $15-16 billion, below analyst expectations of $17 billion. Intel CFO David Zinsner said the slowdown has persisted for weeks, with no improvement expected until at least mid-2027. CEO Lip-Bu Tan noted the entire market is affected, forecasting a 10% PC market contraction in 2027 following a 12% decline this year. Memory prices have surged due to AI data center demand, which Intel benefits from but couldn't fully serve due to raw material shortages and a temporary factory closure in Israel. Revenue rose 21% to $16.5 billion last quarter, though profit fell 18%.