Intel shares fell sharply after the chipmaker reported disappointing profit and gave a weak outlook for the personal computer market.
The company now expects its total addressable market for personal computers to contract by about 12% this year, down from earlier projections. The revised forecast underscores continued weakness in demand for PCs amid a broader tech slowdown.
Intel's profit missed Wall Street expectations, pressured by higher costs and softening sales in its client computing division. Executives cited macroeconomic headwinds and inventory adjustments across the PC supply chain as key factors weighing on results.
The weak outlook reignited concerns about Intel's ability to compete with rivals such as AMD and Qualcomm, particularly as the company transitions to a new manufacturing strategy. Shares of Intel dropped more than 8% in after-hours trading following the earnings release.
Analysts said the results highlight ongoing challenges in Intel's core business, though some noted potential upside from its data center and AI-focused chip segments.
Source: Wall Street Journal US Business · Summarized by HeadlinesBriefing