Intel Stock Plunges on Weak Q4 Outlook Despite Strong Data Center Growth

Investor concern centred on the guidance. Intel expects fourth-quarter revenue of between $15 billion and $16 billion, compared with a consensus near $17 billion, and adjusted EPS of just $0.25. Non-GAAP gross margin is projected to fall to about 38%, down from 44% in the third quarter. Part of the shortfall is tied to a plant shutdown in Israel.

Chief Financial Officer David Zinsner said Intel expects the PC slowdown to persist at least through the first half of next year. On its earnings call, the company said it anticipates the PC market will contract by about 12% in units this year, and it reportedly sees a further 10% decline in 2027.

CEO Lip-Bu Tan said Intel's next flagship client processor will be built on the company's 18A-P node, with more details promised at CES in January.