Intel shares fall 20% after hours on weak Q4 forecast
Intel just took a 20% hit in after-hours trading, all because its forecast for the next quarter fell short of what Wall Street wanted to see.
The company says ongoing struggles in the global PC market are making things tough.
For the fourth quarter, Intel expects to bring in $15 billion to $16 billion in revenue and 25 cents per share, well below analysts' hopes.
Intel beats estimates, client computing slips
Interestingly, Intel actually beat expectations last quarter, with revenue up 21% to $16.51 billion and earnings at 52 cents per share.
Still, its client computing and physical AI group slipped by 5%, showing there's pressure even when things look good overall.
PC shipments are down worldwide, and while AI hype boosted Intel's stock earlier this year, there's now some worry about where demand is headed next.
CEO Lip-Bu Tan says he's still optimistic, while finance chief David Zinsner says the company is focused on steady growth despite the bumps ahead.