Intel Corp. is forecasting one of the worst quarters in its history, touching off a broader selloff of chips companies as a slowdown in personal-computer sales ravages the industry.
Late Thursday, Intel gave a sales range that missed analysts’ estimates by billions of dollars, warning that revenue could fall to the lowest quarterly level since 2010. Shares plunged 10% Friday in premarket trading. Advanced Micro Devices Inc., Applied Materials Inc., Lam Research Corp. and Qualcomm Inc. declined. Semiconductor KLA Corp., which issued its own disappointing outlook, also slid.
Chip companies are reeling over a steep decline in demand for PC processors that has wiped out profits and led to deep cuts across the industry. Intel’s outlook signals more pain to come. The company is eliminating jobs and slowing spending on new plants in an effort to save as much as $10 billion. It’s taking an especially large hit from losing market share to rivals.
