Intel shares plunge 23% after hours on cash burn warning and supply woes
Briefing by News4U · First published
RTÉ Business reported that Intel shares plunged 23% in after-hours trading after the company warned it would burn cash this year due to manufacturing bottlenecks, heavy spending and faltering PC demand. Intel said third-quarter revenue rose 21% to $16.51 billion, in line with estimates, but forecast December-quarter revenue of $15-16 billion, below analysts’ $17.07 billion estimate. The company expects PC chip revenue to fall in the mid-20% range and lowered its gross-margin outlook by 200 basis points. Intel also said the October explosion at its Kiryat Gat, Israel plant would erase roughly $600 million in revenue over two quarters and reduce AI server chip supplies. [1]
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- Intel shares tumble after hours, hit by chip supply woes
RTÉ Business · · Full text