Intel has warned that it will experience a net cash outflow this year due to weak personal computer market demand, manufacturing bottlenecks, and massive expansion spending. Intel’s stock plunged 23% in after-hours trading.
Like many tech giants, Intel has previously made significant investments in chip manufacturing, but supply chain disruptions have weakened its ability to capitalize on the growing demand for data center chips. Meanwhile, soaring memory prices have increased PC manufacturing costs, further dampening end-user demand.
Intel warned that this weak demand trend could persist until the first half of 2027, while its fourth-quarter revenue guidance fell below market consensus.
Intel expects fourth-quarter revenue of $15 billion to $16 billion, compared to the analyst average expectation of $17 billion, with some forecasts exceeding $18 billion. Excluding certain items, fourth-quarter earnings per share are expected to be 25 cents, while Wall Street expects 43 cents.
“I am deeply sorry that we were unable to fully meet our customers’ strong demand this quarter,” said Intel CEO Pat Gelsinger during the analyst call. “We are currently facing several significant challenges, including manufacturing supply shortages, an unprecedented memory supply crisis, and the resulting weakness in PC demand.”
If Intel's stock price maintains a 23% decline during regular trading hours on Friday, its market capitalization will evaporate by over $112 billion (IT Home note: approximately RMB 747.808 billion at current exchange rates);此前, the stock had more than doubled in value for the year.