Intel Falls 16% After Forecasting $15 Billion-$16 Billion Q4 Revenue and 37% Gross Margin
Updated
Updated · Financial Times · Oct 29
Intel Falls 16% After Forecasting $15 Billion-$16 Billion Q4 Revenue and 37% Gross Margin
3 articles · Updated · Financial Times · Oct 29
Summary
$15 billion-$16 billion in projected fourth-quarter revenue and a 37% gross margin outlook sent Intel shares down about 16% in after-hours trading, despite third-quarter revenue meeting expectations at $16.5 billion.
37% margin guidance came in well below expectations as memory-chip shortages lifted costs, while Intel said PC demand weakened more than expected as data-center customers outbid other buyers for components.
David Zinsner said the PC slowdown would last at least through the first half of next year; Counterpoint data showed global PC shipments fell 21% in the third quarter.
7.3 billion dollars in data-center and AI revenue, up 78% year on year, underscored that Intel's stronger AI-linked businesses are still being outweighed by pressure on its core PC market and margins.
The miss lands in Intel's first earnings report since its $20 billion August stock sale, testing confidence in a turnaround that had lifted the shares more than 140% this year.