Intel stock under pressure as PC weakness offsets server growth

Intel reported a strong third quarter on October 29, 2026, but its near-term outlook remains divided between accelerating server demand and a weaker PC market. The company guided to lower fourth-quarter revenue than in the reported quarter, keeping supply, product mix and customer inventories in focus.

Server Growth Meets PC Pressure

According to Intel's results release, third-quarter revenue reached 16.5 billion US dollars, up 21 percent from a year earlier. Data Center and AI revenue increased 78 percent to 7.3 billion US dollars, while Client Computing and Physical AI revenue fell 5 percent to 8.1 billion US dollars.

Intel said the quarter delivered its strongest data-center revenue growth in 15 years. Chief Executive Lip-Bu Tan identified additional Xeon supply as an immediate priority, while Chief Financial Officer David Zinsner said the PC slowdown could continue at least through the first half of 2027.

Fourth-Quarter Guidance Sets The Test

Intel forecasts fourth-quarter revenue of 15.0 billion to 16.0 billion US dollars. The outlook includes GAAP diluted earnings of 0.10 US dollars per share and non-GAAP diluted earnings of 0.25 US dollars, with a non-GAAP gross margin of 38.0 percent. The midpoint would represent a sequential decline from the third quarter.

For investors, the key question is whether server demand can compensate for a deeper client-market contraction. Intel Foundry revenue rose 58 percent year over year to 6.7 billion US dollars, but the foundry segment still reported an operating loss, leaving execution and capacity expansion central to the longer-term recovery case.

Intel stock traded at 52.10 euros on Lang & Schwarz at 4:42 p.m. CET on Wednesday, November 4, 2026. That was 5.84 percent below the 55.33 euros quoted in the latest relevant report published on November 3.

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