Tech · 5 d ago
Intel's stock plunges 28% after a weak outlook, as memory prices hit PC demand
Analysts expected
US$17 billion
Intel forecast
US$15-16 billion
Intel warned of fourth-quarter revenue of US$15 billion to US$16 billion, below the roughly US$17 billion analysts expected. It also expects its gross margin to fall to 37 per cent from 43 per cent.
Intel's chief executive says customers are signalling a PC slowdown because of memory prices and availability.
— Lip-Bu Tan, Intel CEO
Value lost by the US government's stake
12 US$ billion
The drop cut about US$12 billion from the value of the US government's 10 per cent stake in Intel. The stock is still up more than 70 per cent this year.
Intel's data-centre revenue grew 78 per cent from a year earlier, but it is held back by limited factory capacity. Its next new plant in Arizona is not expected online until 2028.
