INTC Stock Tumbles After-Hours After Q3 PC Slump And Supply Bottlenecks Cloud Fourth-Quarter Guidance

• Intel reported third-quarter revenue of $16.5 billion, up 21% year-over-year, and earnings of $0.52 per share, beating analyst consensus estimates. 
• Despite solid data center growth, the company faced sliding client PC sales, a severe memory chip shortage, higher component prices, and factory disruptions. 
• Intel expects Q4 revenue to come in between $ 15 and $16 billion, below what analysts expect. 

Intel Inc. (INTC) share price tumbled about 17% after-hours on Thursday after the company forecast  weaker-than-expected fourth-quarter revenue and earnings amid a slump in persona; computer (PC) sales amid supply bottlenecks. 

For the third quarter ended September 26, Intel posted total sales of $16.5 billion, marking a 21% increase from the same period last year and matching analysts' average predictions. Adjusted earnings reached $0.52 per share, surpassing Wall Street’s consensus estimate of $0.41 per share.

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“Our immediate priority is to unlock additional supply to meet extraordinary demand for our Xeon family,” CEO Lip-Bu Tan said. “We are moving with urgency and focus to capitalize on these opportunities to deliver sustainable growth and long-term shareholder value.” 

Intel’s data center and AI business vertical revenue came in at $7.3 billion, up 78% year-on-year and its Foundry business brought in $6.7 billion, up 58% year-on-year. 

Supply Bottlenecks And PC Slump

Intel’s growth was tempered by a severe shortage of memory semiconductors—supplied by firms such as Samsung Electronics Co., SK Hynix Inc., and Micron Technology Inc.—which drove up desktop and laptop prices and dampened end-user demand.

CEO Lip-Bu Tan noted that data center performance could have been even stronger if not for raw material shortages and an unexpected factory shutdown in Israel. An explosion occurred at Intel's Fab 28 semiconductor plant in Kiryat Gat, southern Israel on October 14, 2026. 

"I am a bit disappointed in terms of how we cannot fulfill the customer requirements," Tan said in an interview to Bloomberg. He added that soaring memory pricing is expected to remain a severe industry-wide challenge heading into 2027.

Intel projects that the ongoing PC market contraction will persist through at least the first half of 2027, estimating a 10% decline next year following an anticipated 12% slide in 2026.

Q4 Business Outlook

For the fourth quarter, Intel expects revenue to range between $15 billion and $16 billion, falling significantly below the average analyst estimate of $17 billion, with some projections stretching past $18 billion.

On the profitability front, the company forecasts adjusted earnings of $0.25 per share for the quarter, trailing well behind Wall Street's projected $0.43 a share. Additionally, Intel anticipates its gross margin will narrow to 38%, down from the 43% reported in the third quarter.

INTC Stock: Retail View 

Retail sentiment on Stocktwits was ‘extemely bullish’ with ‘high’ message volumes. 

A user questioned if analysts had placed unrealistic expectations on Q4 revenue. 

INTC stock has surged 156% year-to-date. 

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