Intel's AI boom drives record server sales but stock plunges 23% on PC market slump

Intel's stock plunged 23% after reporting record server CPU revenue driven by the AI boom, while warning of a sharp PC market slowdown. The company forecasts PC sales will drop 12% this year and another 10% in 2027, exacerbated by memory shortages. Server segment revenue surged 78% year-over-year to $7.3 billion, but client business fell 5.1% to $8.1 billion. Intel's CFO stated the PC market slowdown will persist through the first half of next year, and the company's fourth-quarter revenue forecast of $15-16 billion missed analyst expectations of $17.1 billion. Intel expects the server processor market to grow fivefold to $200 billion within five years. The company also faces supply constraints, including a $600 million revenue loss from an October incident at its Israel facility, while third-party foundry revenue remained modest at $411 million.