Semiconductor and PC-hardware stocks fell sharply on Friday after Intel issued a much weaker outlook for global personal computer demand. Dell Technologies dropped 12.78% to $414.75, HP Inc. fell 9.74% to $28.73, and Advanced Micro Devices declined 11.78% to $499.67. The selling broadened across the chip sector, with Intel down roughly 30.75%, Nvidia off 5.13%, and Broadcom lower by 6.45%.
Intel’s fourth-quarter guidance was the main catalyst. The company forecast revenue of $15 billion to $16 billion and adjusted earnings of $0.25 per share, well below analyst expectations of about $17.1 billion and $0.43 per share. CEO Lip-Bu Tan said the environment would persist until memory availability and prices normalize, while CFO David Zinsner said PC weakness would continue at least through the first half of next year. Intel expects the PC total addressable market to contract about 12% in 2026 and another 10% in 2027, with second-half 2026 volumes falling more than 20%.
The warning was reinforced by Gartner data showing worldwide PC shipments fell 22.4% year over year to 55.4 million units in the third quarter. HP shipments dropped 30.9% to 10.37 million units, while Dell shipments declined 25.4% to 7.58 million units. Gartner said DRAM costs had increased fivefold year over year, raising complete-system prices and discouraging purchases.
AMD’s upcoming November 3 earnings report will test whether its stronger data-center trajectory can offset PC weakness. Its second-quarter Data Center revenue rose 107% year over year to $6.7 billion, while Client revenue increased 23% to $3.1 billion. The company guided third-quarter revenue to about $13 billion, and Susquehanna reiterated a Buy rating with a price target raised to $650 from $620.
