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Intel Stock Could Fall Another 13%, JPMorgan Warns as AI Boom Fails to Fix Its Problems

Reviewed by ClearTape · Source: Benzinga

Key takeaways

Intel Corp.
Q3 revenue $16.5 billion (+21%
YoY
Year over year — compared with the same period last year.
)
DCAI revenue $7.3 billion (+78%
YoY
Year over year — compared with the same period last year.
)
PC revenue $8.1 billion (-5%
YoY
Year over year — compared with the same period last year.
)

What happened

Intel Corp. (NASDAQ: INTC) reported third‑quarter revenue of $16.5 billion, up 21%

YoY

Year over year — compared with the same period last year.

, with its Data Center and AI segment posting $7.3 billion, a 78% jump. The company warned that it cannot meet the surge in demand for its server chips, citing supply limits that won’t ease until the second half of 2027. PC‑related sales fell 5% YoY to $8.1 billion, and Intel’s fourth‑quarter revenue

guidance

What a company says it expects for future sales or profits — a forecast from the company, not a guarantee.

of $15‑$16 billion is below analysts’ $17.1 billion estimate. A factory outage in Israel could cut Q4…

Why it matters

The sharp growth in DCAI revenue shows AI demand is strong, but Intel’s inability to scale production limits the upside. The PC slowdown and supply bottlenecks add pressure on earnings, while the factory outage adds short‑term revenue drag. JPMorgan’s lower target reflects concerns that the company’s capital spending…

Short-term and longer-term

Short-term. Over the next few days, watch for the Q4 earnings release and any updates on the Israel factory outage.

Longer-term. For the coming months, Intel’s ability to convert AI demand into cash will be critical.

Words on this card

DCAI: Data Center and AI, Intel’s segment focused on server CPUs and custom AI chips
ASIC: Application‑Specific Integrated Circuit, custom chips made for specific customers
basis points: One hundredth of a percent, used to describe changes in margins or rates
capex: Capital expenditures, money spent on plant, property, and equipment
gross margin: Revenue minus cost of goods sold, expressed as a percentage of revenue
YoY: Year over year — compared with the same period last year.

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