Shares of the US regime-based technology heavyweight Intel have reportedly dropped by 23 percent amid a severe downturn in the personal computer market and downbeat revenue projections. Observers suggest that persistent macroeconomic headwinds and component shortages are heavily weighing on the corporation's operational outlook.

According to Intel's own forward-looking estimates, worldwide shipments of personal computers are allegedly poised to decline by 12 percent in 2026 and by another 10 percent in 2027. The broader market stagnation is widely expected to persist through at least the first half of the upcoming year, dampening recovery hopes. *

A primary driver behind this downturn is the acute scarcity of memory chips coupled with surging component costs. Manufacturers of laptops and desktop computers are facing inflated prices for essential parts, which subsequently drives up final device prices and suppresses consumer demand, thereby reducing the need for Intel processors.

The steep stock sell-off was observed in extended trading following the close of the main session on October 29. The corporation supposedly projects fourth-quarter revenue to range between $15 billion and $16 billion, falling short of the roughly $17.07 billion average expected by independent analysts.

Interestingly, Intel's third-quarter results had previously shown some headline growth, with revenue increasing by 21 percent year-over-year to nearly $16.5 billion. However, performance across various business units remains starkly uneven, with personal computer chip revenues slipping even as data center segments expanded.

Operational setbacks have further complicated the situation for the American entity. A fatal explosion at Intel's Kiryat-Gat manufacturing plant in Israel in October halted operations for two weeks, an incident that management estimates could trigger roughly $600 million in lost revenue over two quarters.

Source: kun.uz