Intel's PC Warning Sends Shares Down 25% Premarket
Intel shares fell about 25% in premarket trading. After Thursday's close, the company guided fourth-quarter revenue to $15B-$16B, against an LSEG consensus of $17.07B. Reuters says the drop wipes more than $123B off its market value.
The warning traces back to memory prices. As memory makers shift capacity to HBM for AI, PC costs have risen and demand has weakened. Intel expects PC chip sales to fall more than 20% sequentially this quarter and sees weakness lasting at least through the first half of 2027.
Third-quarter results were not the problem: EPS of $0.52 beat the $0.40 estimate, while revenue of $16.5B came in slightly below expectations. CFO David Zinsner said Intel does not expect positive cash flow this year. The market read this not as an Intel story, but as a PC demand story.
The selloff is spreading down the supply chain. Per Reuters, AMD, Arm, Qualcomm, Nvidia, Broadcom and Micron fell between 2% and 9% premarket. dropped more than 10% and HP more than 8%, while is down 5.2% and TSMC's US shares 3.5%.
