Key facts
- Intel expects PC slowdown to continue at least through the first half of next year.
- An explosion at Intel's Israel factory is expected to impact fourth-quarter revenue by $300 million and gross margins by 200 basis points.
- Intel's PC chip business sales fell 5% to $8.10 billion in the third quarter.
Intel forecast quarterly revenue and profit below estimates on Thursday, warning that a slowdown in the PC market driven by elevated memory costs would persist into next year. The guidance could test confidence in a stock that has more than doubled this year, as investors weigh ongoing manufacturing constraints and soft PC demand against strong demand for its AI server chips and efforts to revive growth through a costly foundry expansion. The company expects fourth-quarter revenue between $15 billion and $16 billion, below analysts' average estimate of $17.07 billion. Adjusted profit is expected to be 25 cents per share, trailing estimates of 43 cents. An explosion at its factory in Kiryat Gat, Israel, is expected to hurt fourth-quarter revenue by roughly $300 million and gross margins by about 200 basis points.