Intel Plunges 29% as PC Winter May Persist

蔡蔡欣怡 理財線記者2026-10-31 18:48

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Intel's third-quarter AI data center revenue surged 78%, unable to offset the decline in its PC division, with shares plunging 29%. Soaring memory prices hit consumer electronics hard, global PC shipments slumped by more than 20%, and the industry winter may last until 2030.

AI Revenue Surge Fails to Offset PC Weakness

Intel reported third-quarter earnings on October 30, with shares plunging 29% in a single day, the worst record since 1974. The report showed data center and artificial intelligence-related sales surged 78% to US$7.3 billion, while revenue from the PC-centered Client Computing division fell 5% to US$8.1 billion, still the company's largest revenue division. The company expects computer shipments to fall in the fourth quarter due to memory shortages, forecasting fourth-quarter revenue of US$15.0 to US$16.0 billion, far below the market consensus of US$17.1 billion, with adjusted earnings per share of only US$0.25, also below market expectations of US$0.44, and gross margin to drop sharply by 6 percentage points.

PC Shipments Collapse by Over 20%

Research data showed global PC shipments shrank sharply in the third quarter this year. Counterpoint Research's preliminary estimate put third-quarter shipments at 57 million units, down 21% year-on-year. Gartner put it at 55.4 million units, down 22.4%. IDC put it at 62.7 million units, down 20.1%. The three firms use different methodologies, but the trend is consistent, showing shipments shrinking at a pace of more than 20%, with the fourth-quarter contraction potentially widening to more than 25%. The market had hoped higher unit prices and server business would offset weakness on the consumer side, and Intel's earnings shattered that expectation. Similarly hit, AMD shares plunged nearly 11%, while Qualcomm shares plunged more than 11%.

Memory Shortage May Last Until 2030

The contraction in the consumer market was mainly due to prices of key components such as memory, hard drives, storage chips and graphics cards rising several-fold, leaving consumers unable to afford new computers and reluctant to buy new phones. Revenue growth driven by the AI data center construction boom cannot make up for the decline in the consumer market. Qualcomm was also hit by a sharp drop in global mobile phone shipments. SK Hynix has already projected that the memory market will remain undersupplied through 2030, meaning prices for key components are unlikely to ease in the short term, and the cold winter for Intel and the PC industry may last for years.

FAQ

What were the highlights of Intel's third-quarter earnings?

Data center and AI sales grew 78% to US$7.3 billion, Client Computing division revenue fell 5% to US$8.1 billion, shares plunged 29% in a single day, and fourth-quarter revenue guidance of US$15.0 to US$16.0 billion came in below expectations.

How did global PC shipments perform in the third quarter?

Counterpoint counted 57 million units, down 21%, Gartner counted 55.4 million units, down 22.4%, and IDC counted 62.7 million units, down 20.1%, with the fourth-quarter contraction potentially widening to more than 25%.

When could the consumer electronics market recover?

A recovery will require prices of key components such as memory to ease, but with SK Hynix projecting memory will remain undersupplied through 2030, the industry winter may last for years.