Intel warning sparks chip rout as PC weakness clouds turnaround
FILE PHOTO: An Intel logo and a computer motherboard appear in this illustration taken August 25, 2025. REUTERS/Dado Ruvic/Illustration/File Photo
Read a summary of this article on FAST.
Get bite-sized news via a new
cards interface. Give it a try.
Click here to return to FAST
Tap here to return to FAST
FAST
Oct 30 : Intel’s shares slumped 25 per cent in premarket trading after the chipmaker forecast a bleak quarter and warned of persistent weakness in the personal computer market through at least the first half of 2027, sparking a selloff in global chip stocks.
The decline puts the US chipmaker, which forecast fourth-quarter revenue and profit below Wall Street expectations, on track to lose more than $123 billion in market value and open at its lowest level in about six months if losses hold through the regular trading session.
The forecast underscores the challenges facing CEO Lip-Bu Tan’s turnaround effort, with Intel still grappling with a prolonged PC market slump even as it invests heavily in AI and manufacturing expansion.
Semiconductor stocks, including Advanced Micro Devices, Arm Holdings, Qualcomm, Nvidia, Broadcom and Micron, fell between 2 per cent and 9 per cent in premarket trading.
Guess Word
Crack the word, one row at a time
Buzzword
Create words using the given letters
Mini Sudoku
Tiny puzzle, mighty brain teaser
Mini Crossword
Small grid, big challenge
Word Search
Spot as many words as you can
The STOXX Europe 600 Technology Index was down 2.1 per cent, with sector heavyweight ASML shedding 5.2 per cent. US-listed shares of the world’s largest contract chipmaker, TSMC, were down 3.5 per cent.
Intel expects fourth-quarter revenue of $15 billion to $16 billion, below analysts’ average estimate of $17.07 billion, according to data compiled by LSEG.
Finance chief David Zinsner also said Intel does not expect positive cash flow this year.
MEMORY CRUNCH BITES
Higher memory prices, driven by suppliers shifting capacity toward AI-focused high-bandwidth memory chips, are raising PC costs and weighing on already weak consumer demand.
PC chips accounted for roughly half of Intel’s third-quarter revenue, and the company expects sales from the segment to decline more than 20 per cent sequentially this quarter after a 5 per cent drop in the September period.
“It will be important to see if Intel can expand the highly profitable Xeon product supply to help offset this developing weakness in PC,” said Brian Mulberry, chief market strategist at Zacks Investment Management.
“Bottom line, weaker sales volumes, higher manufacturing costs, and an out-of-cycle product mix is a recipe for the stock to decline over the near term as future earnings are under a lot of pressure.”
Source: Reuters
Sign up for our newsletters
Get the CNA app
Stay updated with notifications for breaking news and our best stories
Get WhatsApp alerts
Join our channel for the top reads for the day on your preferred chat app
Get bite-sized news via a new
cards interface. Give it a try.
Click here to return to FAST
Tap here to return to FAST
FAST
