Intel shares plunge 25% as it warns that the AI boom's thirst for chips is hurting business
Source: Business Insider ·
"The industry continues to navigate one of the most significant supply shortages in history," Intel CEO Lip-Bu Tan said on an earnings call.
From the source
Intel CEO Lip-Bu Tan warned of one of the "most significant supply shortages in history."Akio Kon/Bloomberg via Getty ImagesIntel shares dropped as much as 25% in premarket trade Friday after disappointing earnings.The chipmaker said it expects revenue to drop in Q4 as AI demand squeezes the supply of chips for PCs.Computing is facing "one of the most significant supply shortages in history," its CEO said.Intel shares plummeted as much as 25% in premarket trading Friday after the chipmaker warned about a weaker market as supply shortages linked to the AI boom bite.As of around 7:45 a.m. ET, shares in the California-headquartered company were set to open at $68.48, down from $92.07 at Thursday's close.On Thursday, it reported third-quarter revenue of $16.5 billion, up 20% from a year earlier. However, it forecast fourth-quarter revenue of $15 billion to $16 billion and earnings per share of $0.25 — down from $0.52 in the third quarter.The AI boom is increasing demand for memory and…