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Intel slides 25% in premarket after weak quarter outlook
Reuters reported Intel fell about 25% in Friday premarket trading after a fourth-quarter forecast below estimates and a warning that PC weakness could last into 2027.
Based on reporting by Reuters
Intel Corp. shares were down about 25% in premarket trading Friday after the company issued a fourth-quarter outlook below Wall Street estimates and said weakness in personal computers could last at least through the first half of 2027, Reuters reported1.
The chipmaker guided fourth-quarter revenue to $15 billion to $16 billion, compared with an average analyst estimate of $17.07 billion in LSEG data cited by Reuters1. Finance chief David Zinsner also said the company does not expect positive cash flow this year, according to the report1.
Reuters said personal-computer chips made up about half of Intel's third-quarter revenue and that the company expects that segment's sales to fall more than 20% sequentially this quarter, after a 5% drop in the September period1. The report tied higher memory prices, as suppliers shift capacity toward AI-focused high-bandwidth memory, to higher PC costs and weaker consumer demand1.
If the premarket move held into regular trading, Reuters said Intel would be on track to lose more than $123 billion in market value and open near a six-month low1. Other chip names including Advanced Micro Devices, Arm Holdings, Qualcomm, Nvidia, Broadcom and Micron were down between 2% and 9% in premarket trading, with Europe's STOXX 600 Technology index down 2.1%, ASML down 5.2% and U.S.-listed TSMC shares down 3.5%, the report said1.