Intel forecasts $15–16 billion in fourth-quarter revenue — Channel NewsAsia

US company Intel forecasts fourth-quarter revenue of between $15 billion and $16 billion, below analysts’ average estimate of $17.07 billion. Adjusted earnings are expected by the company to amount to 25 cents per share, compared with the market’s forecast of 43 cents. As Channel NewsAsia reports, Intel’s outlook was affected by the prolonged weakness of the personal computer market and an October explosion at the company’s facility in Kiryat Gat, Israel.

Impact of the plant shutdown

Intel Chief Financial Officer David Zinsner said the explosion reduced the fourth-quarter revenue forecast by approximately $300 million and gross margin by around 200 basis points. The facility was not operating for two weeks, and the company is still assessing which silicon wafers can be used or sold.

Zinsner also said that Intel expects a similar impact on revenue in the first quarter. The Kiryat Gat plant mainly produces data center chips using Intel 10 process technology. The company planned to begin ramping up production at the site by the end of the week.

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Weak sales of PC chips

In the third quarter, which ended on September 26, Intel’s revenue rose by 21% to $16.51 billion, nearly matching analysts’ estimate of $16.50 billion. Adjusted earnings amounted to 52 cents per share, exceeding the expected 40 cents.

At the same time, sales in the personal computer chip division fell by 5% to $8.10 billion, while analysts had expected $8.98 billion. According to Zinsner, the downturn in the PC market will continue at least through the first half of next year. Intel also raised its 2026 capital expenditure forecast from $18 billion to $20 billion and reported a significant increase in spending in 2027 to expand production capacity.