Intel shares drop 5.5% on outlook

Intel shares fell by over 5.5% after it gave a disappointing forecast for sales in the current quarter, signaling lacklustre year-end demand for personal computers, servers, and the chips that run them.

Revenue at the world’s largest semiconductor maker will be $15.7bn (€14.26bn), plus or minus $500m (€456m), the company said, falling short of analysts’ estimates of $15.9bn (€14.5bn).

Intel’s third-quarter sales reached a record, lifted by processor orders from PC makers that decided to shore up their chip supplies ahead of the holiday shopping season.