# Intel Shares Plunge 16% Following Weak Fourth-Quarter Guidance Chipmaker cites ongoing PC market softness and operational setbacks for disappointing revenue outlook. - **Source:** [US Top News and Analysis](https://brifing.si/source/635540e9-943e-450d-ae52-ae0bfe3b67eb) - **Published:** 2026-10-29 - **Topic:** [Business](https://brifing.si/c/business) - **Original article:** - **On Brifing:** https://brifing.si/s/f101bbbe-b0fa-4f8d-8fdf-2d3807a83de8 ## Market Reaction and Guidance Intel shares plummeted 16% in extended trading after issuing a weak fourth-quarter forecast. The company expects adjusted earnings per share of 25 cents on revenue between $15 billion and $16 billion. This outlook significantly missed analyst expectations of $17.1 billion in revenue and 43 cents per share, triggering immediate investor concern. ## PC Market Headwinds Persist The company attributed its poor performance to continued softness in the global PC market. Revenue in the client computing and physical AI group fell 5% to $8.1 billion. Global PC shipments declined 4% in the second quarter, driven by soaring costs for memory and other essential components required for manufacturing. ## Operational and Financial Impact Intel faces a $600 million revenue loss over two quarters due to a tragic explosion at an Israeli fab that killed two workers. Finance chief David Zinsner confirmed the incident impacts current forecasts. The company plans to resume production there by the end of the week to mitigate further supply chain disruptions. ## Data Center Growth Divergence While the client computing segment struggled, Intel's data center and AI revenue surged 78% to $7.3 billion. The company remains a key player in agentic AI, where CPUs orchestrate tasks for applications like Meta's Muse. Despite near-term headwinds, leadership maintains that long-term demand for computing platforms remains robust across the portfolio. ## Foundry Business Strategic Shift Intel's foundry business continues to struggle while attempting to provide an alternative to TSMC. The company is currently in high-volume production of its 18A chip in Arizona. CEO Lip-Bu Tan has adopted a more cautious spending approach compared to his predecessor, focusing on disciplined investments in capacity and essential working capital. ## Infrastructure and Expansion Plans The company recently installed the first structural truss at its Ohio fab, originally slated for 2025 delivery. Meanwhile, the Arizona fab is expected to begin operations by the end of 2028. Intel also completed a $23 billion equity offering in August to support the massive infrastructure required for modern artificial intelligence demands. ## Competitive Landscape and Partnerships Oracle recently expanded its deal with Intel, announcing plans to deploy next-generation Xeon server processors at its annual AI conference. While Nvidia and AMD dominate the GPU market, analysts suggest major fabless customers might choose Intel's 14A chip to diversify supply chains and exert pricing pressure on dominant manufacturers like TSMC. ## Future Outlook and Stability Intel's stock, despite a 150% gain earlier this year, has fallen 23% in October amid AI buildout concerns. With memory shortages and constrained substrate supplies, the company faces significant execution challenges. Investors are now closely watching how disciplined capital allocation and new fab operations will stabilize the company's long-term market position. ## Sources covering this story - https://www.cnbc.com/2026/10/29/intel-intc-q3-earnings-report-2026-.html — --- _Summary written by Brifing from the original reporting. Copyright in the original article belongs to its publisher; read the full piece at the link above._