--- title: "Intel Says PC Slowdown Came 'Sooner and Deeper' Than Expected — Analyst Warns AI-Driven CPU Boom May Not Offset Foundry Investment Risks" type: "News" locale: "en" url: "https://longbridge.com/en/news/303725378.md" description: "Intel reported a PC slowdown that was 'sooner and deeper' than expected, driven by rising memory prices. Despite beating Q3 earnings estimates, the company's Q4 guidance disappointed analysts, causing its stock to slump approximately 23% after hours. While AI-driven server demand remains robust, analysts warn that costly foundry investments and weak PC sales threaten Intel's turnaround efforts, with current AI growth potentially insufficient to offset these near-term challenges." datetime: "2026-10-30T09:52:49.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/303725378.md) - [en](https://longbridge.com/en/news/303725378.md) - [zh-HK](https://longbridge.com/zh-HK/news/303725378.md) generator: "portal-rs" --- # Intel Says PC Slowdown Came 'Sooner and Deeper' Than Expected — Analyst Warns AI-Driven CPU Boom May Not Offset Foundry Investment Risks **Intel Corp.**‘s (NASDAQ:INTC) AI-driven server demand offers a growth opportunity, but a deeper PC slowdown and costly foundry investments threaten its turnaround, says analyst. Rising memory prices have been weighing on PC demand, particularly laptops, but the slowdown “came a little sooner and deeper than we thought,” Intel’s corporate vice president of investor relations, **John Pitzer**, told MarketWatch. Despite progress in chip manufacturing, Intel’s latest results highlighted the challenges of turning its turnaround efforts into a “sustained recovery,” **eMarketer** senior analyst **Asa Hiken** told the publication. Intel has benefited from a surge in data-center server CPU demand driven by the rise of agentic AI, strengthening its position in the AI market beyond traditional GPU competition. However, Hiken cautioned that the demand may not be enough to offset near-term challenges, particularly continued weakness in the PC market. The chipmaker’s long-term growth hinges largely on its foundry business, with its advanced chip-packaging technology emerging as a promising area attracting customer interest and Wall Street optimism, Hiken said. Hiken noted that Intel faces massive chipmaking costs and must secure significant foundry customer commitments to justify its investments and reassure investors about the business’s viability. **Read Also: SK Hynix, Samsung Tumble in South Korea as Wall Street's AI Sell-Off Rattles Asian Markets — KOSPI Triggers Rare Sell-Side Trading Halt** ## Weak Q4 Outlook Overshadows Earnings Beat In the third quarter, Intel beat quarterly earnings and revenue estimates, reporting adjusted EPS of 52 cents against expectations of 40 cents and revenue of $16.51 billion versus the $16.47 billion consensus. However, its fourth-quarter guidance disappointed, with projected adjusted EPS of 25 cents and revenue of $15 billion-$16 billion, both below analyst expectations. CEO **Lip-Bu Tan** said CPU demand remains “robust” despite near-term PC industry weakness, with the company prioritizing increased supply of its Xeon processors while strengthening its product lineup and roadmap to drive long-term growth and shareholder value. Intel’s stock slumped about 23% after hours on Thursday, prompting CNBC’s **Jim Cramer**, who had previously called it his favorite stock, to express anger and disappointment. **Deepwater Asset Management**’s **Gene Munster** attributed the weak outlook to slowing PC demand amid high memory costs, cautioning that Intel’s challenges should not be viewed as a warning for Nvidia Corp. (NASDAQ:NVDA), which continues to beat estimates. Benzinga’s Edge Rankings place INTC in the 94th percentile for momentum. Benzinga’s screener allows you to compare INTC’s performance with its peers. **Price Action:** Year-to-date, INTC stock has surged 149.51%, as per Benzinga Pro. During Friday’s pre-market trading session, the stock was trading 25.31% lower at $68.77. ***Disclaimer*:** *This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors*. **Read Also: Amazon Has Bigger Plans for AI Chips: Andy Jassy Says Customers Want Them ‘Outside’ AWS, but Selling Them Comes With a Trade-Off** Image via Shutterstock ### Related Stocks - [INTC.US](https://longbridge.com/en/quote/INTC.US.md) - [INT.US](https://longbridge.com/en/quote/INT.US.md) - [INTW.US](https://longbridge.com/en/quote/INTW.US.md) - [INYY.US](https://longbridge.com/en/quote/INYY.US.md) - [LINT.US](https://longbridge.com/en/quote/LINT.US.md) - [SMSN.UK](https://longbridge.com/en/quote/SMSN.UK.md) - [NVDA.US](https://longbridge.com/en/quote/NVDA.US.md) - [SKHY.US](https://longbridge.com/en/quote/SKHY.US.md) ## Related News & Research - [Intel faces PC weakness, manufacturing constraints, analysts say](https://longbridge.com/en/news/303755233.md) - [Why Is Intel Stock Sinking Friday?](https://longbridge.com/en/news/303734611.md) - [Intel signals slower growth as PC market remains under pressure](https://longbridge.com/en/news/303619483.md) - [Symbolic Mind Collaborates With Intel to Bring AI Training, Not Just Inference, to CPU-Based Server Infrastructure](https://longbridge.com/en/news/303233325.md) - [Intel Corporation $INTC Stock: VestGen Advisors LLC Raises Position](https://longbridge.com/en/news/303539113.md) --- > **Disclaimer: This article is for reference only and does not constitute any investment advice.**