Intel warns PC slump will last into 2027 as memory shortage bites

Intel's latest results are a tale of two markets. Servers are booming; PCs are not. In its third-quarter 2026 report on 29 October, Intel posted revenue of $16.5 billion, up 21% from $13.7 billion a year earlier, with GAAP earnings of $0.60 per share and non-GAAP earnings of $0.52. But its forecast for the holiday quarter and its comments about the PC market sent the stock down by more than 20% in after-hours trading.

Servers up, PCs down

CNBC reports that Intel's data centre and AI revenue jumped 78% to $7.3 billion, while the client computing group, which sells laptop and desktop processors, fell 5% to $8.1 billion. CFO David Zinsner said the data centre business had its strongest growth in 15 years.

For the fourth quarter, Intel guides revenue of $15–16 billion and non-GAAP earnings of $0.25 per share. According to LSEG data cited by CNBC and Reuters, analysts had expected about $17.1 billion. On the earnings call, Zinsner said PC chip revenue should fall more than 20% from the third quarter as PC makers cut their stock of chips.

Why PCs are struggling: memory

Intel now expects the number of PCs sold industry-wide to fall about 12% in 2026, with units in the second half down more than 20%, and it is planning for a further decline of roughly 10% in 2027. It says it does not expect a lasting recovery until memory supply improves and prices normalise. The same memory crunch was flagged by Amazon in its own Q3 results this week.

Intel's guidance also includes a hit of about $300 million to revenue from an incident at its Fab 28 plant in Israel, which Intel says mostly affects older 10-nanometre server products.

What it means if you're buying a PC

Fewer PCs sold and pricier memory usually mean less generous configurations and fewer deep discounts. If you're shopping now, prioritise the parts you can't change later. Many thin laptops have soldered memory, so check our guide to how much RAM you need before you buy, and use our laptop buying guide to decide which specs are worth paying for.

On a brighter note, Intel says chips made on its new 18A process now account for nearly a third of its client CPU revenue, up from under 5% in the first quarter.