OREANDA-NEWS  Intel's stock price collapsed after the release of the revenue forecast of this largest microprocessor manufacturer, which did not meet analysts' expectations. The day before, securities fell by 3.62 percent to $92.07 apiece, and by the time of writing, they had lost about a quarter more in price, falling to about $69 in the premarket.

This happened after Intel said its fourth-quarter sales would range from $15 billion to $16 billion, while analysts had forecast revenue of $17 billion to $18 billion. The company's report also shows that it reduced its net profit in the third quarter year-on-year from $4.1 billion to $3.3 billion.

Intel, according to Bloomberg, is facing a serious downturn in the personal computer (PC) market, whose manufacturers are experiencing difficulties due to a shortage of semiconductor memory components and a sharp increase in component prices. The company estimates that the decline in the PC sector will last at least until the middle of next year, leading to a 10 percent decline after a 12 percent drop in 2026.
 
Nevertheless, in the long term, Intel remains optimistic about the demand for its products and increases spending on new equipment to increase production, intending, among other things, to attract orders from other chip manufacturers who want to use Intel's capacity to produce their own components.

The agency also recalled that Intel's shares have more than doubled since the beginning of the year, as the company is considered one of the main beneficiaries of the AI boom, spurring demand for the company's universal processors, which gave it access to a market dominated by Nvidia technologies. "Intel's disappointing forecast shows that high demand alone is not enough to overcome short-term challenges" and "turn recent transformations around."

 into a sustainable recovery," sums up Asa Haiken, senior analyst at Emarketer.

On October 29, it became known that Boeing's disappointing forecast for aircraft deliveries led to the sharpest drop in the aircraft manufacturer's shares since June 2020.