Intel stock plunges 20% on weak forecast as PC market shrinks

Intel's stock plunged over 20% in after-hours trading after the chipmaker issued a disappointing business forecast, wiping out more than a fifth of its market value. The company cited surging memory prices reducing PC purchases and supply chain issues for data center chips. Intel forecast quarterly revenue of $15-16 billion, below analyst expectations of $17 billion, with adjusted earnings per share of 25 cents versus the expected 43 cents. CFO David Zinsner said the slowdown would persist at least through the first half of 2027, with CEO Lip-Bu Tan noting the entire PC market is affected. Memory prices have soared due to AI data center demand, though Intel struggled to meet that demand due to raw material shortages and a temporary factory closure in Israel. The company expects the PC market to shrink 10% in 2027 after a 12% decline this year, while investing $20 billion in factories.