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

Intel's stock plunged over 20% in after-hours trading after the chipmaker issued a disappointing forecast, citing high memory prices that are reducing PC sales and supply chain issues in its data center business. Intel projected fourth-quarter revenue between $15 and $16 billion, well below analyst expectations of $17 billion, with adjusted earnings per share forecast at 25 cents versus the 43 cents expected. CFO David Zinsner said the slowdown would persist through at least the first half of 2027, while CEO Lip-Bu Tan noted the entire PC market is affected, with an expected 10% contraction in 2027 following a 12% decline this year. The memory price surge stems from soaring demand for AI data centers, which Intel has struggled to fully serve due to raw material shortages and a temporary factory closure in Israel. Despite a 21% revenue increase to $16.5 billion last quarter, net profit fell 18% to $3.3 billion, and Intel plans to invest around $20 billion in factories this year with further spending increases expected.