Intel shares plunged nearly 30% to $65.76 on Friday, wiping out more than $146 billion in market value after issuing quarterly forecasts that fell well short of market expectations. For the fourth quarter, the company expects revenue of $15 billion to $16 billion, compared with $17.07 billion anticipated, and adjusted earnings per share of $0.25 versus $0.43 expected. In the third quarter, revenue rose 21% to $16.5 billion, while the Data Center and AI division grew 78% on demand linked to AI infrastructure. Intel is nevertheless unable to fully satisfy strong demand for server processors because of manufacturing and packaging constraints, while its heavy investment spending and an expected contraction in the PC market are weighing on cash generation. The company is unlikely to generate positive free cash flow next year, but is relying on investments in its 18A manufacturing process and partnerships with Nvidia and Apple to rebuild its foundry business.
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