Intel shares fell more than 20% in extended trading on October 29, 2026, after the chipmaker issued a fourth-quarter forecast below analyst expectations. Intel said it expects a slowdown in the PC market to continue into 2027.

Key Takeaways

  • Intel forecast fourth-quarter revenue of $15 billion to $16 billion, below the $17.1 billion analysts expected.
  • Third-quarter data center and AI revenue rose 78%, while client computing and physical AI revenue fell 5%.
  • An explosion at an Israeli plant is expected to cost about $600 million in revenue over two quarters.

Intel shares drop as outlook misses estimates

Intel forecast adjusted fourth-quarter earnings of 25 cents per share, compared with the 43 cents expected by analysts polled by LSEG. The company’s revenue forecast was also below the analysts’ $17.1 billion estimate.

Chief Financial Officer David Zinsner said Intel expects the PC slowdown to continue at least through the first half of 2027. The share decline followed the forecast, though the timing alone does not establish what caused the move.

Third-quarter growth and supply disruption

Intel’s third-quarter results and outlook showed revenue rose 21% from a year earlier. Revenue was $16.51 billion, slightly above the $16.5 billion LSEG estimate, while adjusted earnings of 52 cents per share exceeded the 40 cents analysts expected.

Client computing and physical AI revenue fell 5% to $8.1 billion, while data center and AI revenue rose 78% to $7.3 billion.

The fourth-quarter forecast also reflects an explosion at an Israeli fabrication plant earlier in October. Zinsner said on the earnings call that the incident would cost Intel about $600 million in lost revenue over two quarters. CEO Lip-Bu Tan said the extended shutdown affected shipments of 10-nanometer chips.

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