Intel shares fall over 20% after Q4 revenue guidance of $15-16 billion misses estimates

Intel gave a fourth-quarter forecast that fell short of Wall Street estimates, first reported by The Economic Times. The chipmaker expects revenue of $15 billion to $16 billion. The LSEG average estimate was $17.07 billion. It sees adjusted profit of 25 cents per share, against an estimate of 43 cents. Shares dropped more than 20% in extended trading.

The company said an explosion at its Israel fab will cut Q4 revenue by about $300 million and gross margin by about 200 basis points. The Kiryat Gat fab did not operate for two weeks. A similar revenue impact is expected in Q1, and ramp-up is to start by the end of the week. The fab largely makes data center chips on the Intel 10 process.

Third-quarter numbers were better. Revenue rose 21% to $16.51 billion, in line with the $16.50 billion estimate. Adjusted profit was 52 cents against an estimate of 40 cents. But PC chip sales fell 5% to $8.10 billion, below the $8.98 billion estimate. CFO David Zinsner said: "Looking ahead, we see the PC slowdown continuing at least through the first half of next year". NDTV Profit first reported a view that the PC market will fall 10% next year after a 12% slide in 2026.

Intel also raised its 2026 capex to $20 billion from $18 billion, and said 2027 spending will rise significantly. It raised $23 billion in August from an upsized share offering. CEO Lip-Bu Tan is leading a turnaround after Intel fell behind Nvidia, with foundry central to the plan to challenge TSMC. The stock had more than doubled this year before the drop.