Intel’s shares slumped almost 30% on Friday, closing around $65, erasing more than $100 billion in market value after the chipmaker issued a fourth‑quarter outlook that fell short of analysts’ expectations. According to Decrypt, the company now expects Q4 revenue of $15 billion to $16 billion, versus the consensus $17.07 billion, and adjusted earnings per share of $0.25 compared with the $0.43 forecast. The sell‑off marks the steepest single‑day decline for Intel in more than five decades.

Strong AI growth can’t offset PC weakness

Both Decrypt and BeInCrypto note that Intel’s data‑center and AI division generated $7.3 billion in revenue for the quarter, up 78% year‑over‑year, the fastest pace in 15 years. Despite this boom, the company’s traditional PC chip segment, which contributed $8.1 billion in the third quarter, is projected to see revenue fall more than 20% in Q4. Analysts cited by BeInCrypto explain that soaring demand for AI‑driven servers is straining memory supplies, driving up laptop costs and suppressing PC sales. CFO David Zinsner reiterated that the PC slowdown is expected to continue through at least the first half of next year.

Manufacturing constraints and a factory accident

Intel’s guidance also reflected ongoing production bottlenecks. The firm cited manufacturing and packaging capacity limits that prevent it from converting strong order books into shipments. An additional hit came from a recent accident at its Kiryat Gat plant in Israel, which Intel estimates will add roughly $300 million to fourth‑quarter costs. Decrypt reported that gross margins are expected to dip to 38% in Q4, down from 44.1% in the prior quarter, as a result of these constraints and weaker PC demand.

What to watch next

Investors will be monitoring Intel’s progress on its 18A process node and its broader foundry ambitions, especially after securing a $5 billion investment from Nvidia in 2025 and a tentative manufacturing deal with Apple. The company’s ability to lift free cash flow and meet its 20% return‑on‑invested‑capital target for new manufacturing capacity will be key. Additionally, memory‑chip pricing trends and any further supply‑chain disruptions could shape the outlook for both the AI and PC segments in the coming quarters.