Intel fourth-quarter guidance and AI data-center reset

Description Intel’s data-center and AI growth is being tested by weak PC demand, guidance concerns, free-cash-flow warnings and operational disruption. Overview Intel reported third-quarter results supported by strong data-center and AI sales but issued weak fourth-quarter guidance. Management warned PC weakness could persist for years, partly because high memory-chip prices are pressuring demand. The selloff deepened after Intel disclosed that a Kiryat Gat explosion halted production for two weeks and will cut fourth-quarter revenue by about $300 million. Why it matters The reset affects Intel shareholders, the U.S. government’s stake, semiconductor investors, AI customers and peers exposed to PC and server demand. Key details • Fourth-quarter revenue guidance is $15 billion to $16 billion. • Adjusted EPS guidance is about $0.25. • Third-quarter revenue was $16.5 billion. • Data-center and AI revenue rose 78% to $7.3 billion. • Intel shares dropped 27%, on track for the steepest single-day decline since 1974.