Intel’s stock is pacing toward a double-digit drop as a PC slowdown spooks investors.

The company blamed a weak personal-computer market for a revenue forecast that came up well shy of what analysts were expecting Thursday. Intel’s outlook for the December quarter calls for between $15 billion and $16 billion of revenue, below the $17.1 billion FactSet consensus view.

PC revenue also surprisingly declined in the September quarter, helping send shares down more than 20% in extended trading Thursday following Intel’s earnings release. Intel is on pace to shed more than $100 billion in market capitalization, according to Dow Jones Market Data. That would be its largest one-day loss of market cap on record.

Shares of Advanced Micro Devices, another maker of PC chips, were down more than 6% in Thursday’s after-hours action.

Within the PC market, demand has slowed as memory-chip prices have risen dramatically. Companies are also facing more limited information-technology budgets, a further factor weighing on PC demand, Intel CFO David Zinsner said on the company’s earnings call.

The pressure on the PC market isn’t exactly a shock given that surging memory prices have been a nagging issue all year, and this was broadly expected to slow demand for laptops. But the negative impact “came a little sooner and deeper than we thought,” John Pitzer, Intel’s corporate vice president of investor relations, told MarketWatch.

Intel’s outlook was also weighed down by an explosion at one of its chip-making facilities in Israel earlier this month. Pitzer said that led to a reduction of $300 million within its fourth-quarter forecast.

David Wagner, a portfolio manager at Aptus Capital Advisors, said in emailed comments that Intel’s earnings report showed that while it’s “losing on one front” with PC chips, it’s also having trouble capitalizing on strong demand for server chips given some component shortages.

Though Intel is making progress in its chip-manufacturing business, which has been a key area of interest for investors, Thursday’s report showcased “the challenges the company faces in pushing its recent turnaround into a sustained recovery,” eMarketer senior analyst Asa Hiken said in comments shared with MarketWatch.

Demand for Intel’s central processing units for data-center servers has surged this year as agentic artificial intelligence has taken off. That has been a boon for the company, which less than a year ago faced questions over its place in the AI world that at the time was mostly focused on graphics processing units like those made by Nvidia.

But server CPU demand isn’t enough on its own to support Intel through near-term challenges, Hiken said, namely the ongoing weakness in the PC market.

The sustainability of Intel’s growth will come down largely to its foundry business, Hiken said. Intel’s advanced chip-packaging technology is gaining attention from customers and is viewed by Wall Street as one of the more promising aspects of its chip-manufacturing business.

However, the costs for building chips are massive, Hiken noted, and Intel still needs to secure meaningful commitments from customers who want to use its foundry. Until then, investors will continue to question the viability of this business and the steep investments being poured into it, he added.