Intel posted that Q3 2026 numbers, but that weak outlook then sent those shares crashing. That revenue rose 21% to $16.5 billion this quarter. Its data center and also that AI unit jumped 78% to $7.3 billion as well. However, those gains were still not enough to satisfy those investors.
That company also issued that Q4 guidance that fell well below those expectations. Intel also now expects that revenue between $15 billion and also $16 billion. Those analysts had instead expected around $17 billion for that period. Those adjusted earnings also came in at 25 cents against those forecasts of 43 cents. As a result, those shares then dropped over 20% on that Thursday.
This drop is also notable because that stock had doubled earlier this year. Those gains came from those bets that Intel would also benefit from that surging AI demand. That company also recently sold $15 billion in those shares to fund that turnaround under CEO Lip-Bu Tan. However, this weak forecast now also raises those questions about that plan.
That global memory chip shortage is also now at that center of this problem. Those rising prices have also reduced that demand for both laptops and also desktops. Intel now expects that PC market to shrink by 12% and then also by 10% in 2027. Those supply issues also slowed that data center unit as well.
Tan told Bloomberg that this crisis will only get worse. He then said that those memory prices went up significantly throughout this year. Tan also predicted that 2027 will bring an even more severe such shortage, noting that those results would have improved without shortages and the factory shutdown.
Reportedly, those PC makers had already reached that limit on such costs. This also suggests that both those manufacturers and also those consumers will feel that pressure throughout this cycle.
Intel has also not yet confirmed that timeline for when those issues ease. That warning about 2027 also suggests that this shortage could persist beyond this quarter.
