Intel shares plunge 20% as AI-driven memory shortage hurts its PC chip business

pstAsiatech · x · 2026-10-30

Per the New York Times, Intel's Q3 revenue rose 21% year over year to $16.5 billion on strong demand for data center chips used in agent-style AI services. But the company guided Q4 revenue of $15-16 billion, below Wall Street expectations, and shares plunged about 20%. The AI boom's domino effect caused a shortage and price surge in memory chips needed for PCs, forcing PC makers to raise prices and ship fewer systems — hitting Intel's core PC chip business. CFO David Zinsner said the market weakened noticeably from late August: 'We really attribute it to memory prices.' Intel's largest investor is the U.S. government.

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