Intel forecast fourth-quarter revenue of $15 billion to $16 billion

Intel said revenue for its third quarter rose 21% to $16.5 billion, from $13.7 billion a year earlier. The company's earnings release, dated Oct. 29, shows net revenue of $16,513 million for the quarter ended Sept. 26. Diluted earnings attributable to Intel were $0.60 a share, against $0.90 a year earlier, and non-GAAP earnings were $0.52 a share, against $0.23. GAAP gross margin was 43.0%, and the non-GAAP figure was 44.1%. Net income attributable to Intel was $3.3 billion, against $4.1 billion. The company said it generated $5.1 billion in cash from operations in the quarter.

By segment, the release shows Client Computing and Physical AI Group revenue of $8.1 billion, down 5%, and Data Center and AI revenue of $7.3 billion, up 78%. Intel Foundry revenue was $6.7 billion, up 58%, most of it intersegment. The release also says Intel completed a $23 billion public equity offering during the period.

For the fourth quarter, Intel forecast revenue of $15.0 billion to $16.0 billion, with diluted earnings of $0.10 a share and non-GAAP earnings of $0.25 a share, and a non-GAAP gross margin of 38.0%, all based on the midpoint of the revenue range. Chief financial officer David Zinsner said in the release that the company sees "the PC slowdown continuing at least through the first half of next year." Chief executive Lip-Bu Tan said demand for the company's CPUs remained robust despite near-term headwinds across the PC industry. Those are the company's forecasts and views, and the release says actual results may differ materially.

CNBC reported that analysts polled by LSEG had expected fourth-quarter revenue of $17.1 billion and adjusted earnings of 43 cents a share. CNBC said Intel's forecast reflects the effects of an incident at a fab in Israel earlier this month, and that the shares fell about 21% in extended trading on Thursday. Those estimates and that move are CNBC's account. This article is not investment advice and does not say whether Intel shares should be bought, held or sold.