Intel Q4 Guidance Misses Estimates as Server CPU Shortage Persists to 2028, PC Demand Weakens

Intel (INTC) issued fourth-quarter guidance below market expectations on Oct. 29, despite reporting an eighth consecutive quarter of results beating its own forecasts, as its data center and PC businesses diverge sharply. Third-quarter revenue was $16.5 billion, with a non-GAAP gross margin of 44.1% and earnings per share of $0.52, above the $0.38 guidance. The Data Center and AI segment posted $7.3 billion in revenue, up 17% sequentially and nearly 80% year-over-year, its strongest growth in 15 years. CFO David Zinsner said DCAI revenue will exceed early-year expectations by nearly $10 billion, yet demand remains unmet. Intel expects industry server CPU shipments to grow more than 30% in both 2026 and 2027, with tight supply persisting into 2028. The PC segment is deteriorating. Client Computing revenue fell 9% sequentially to $8.1 billion and is forecast to drop over 20% in the fourth quarter, hurt by memory shortages and price hikes. Intel guided fourth-quarter revenue to $15 billion-$16 billion, roughly $1.8 billion below consensus, with gross margin falling to 38%.