The company said it would post sales of between $8.7bn and $9.1bn, down from its earlier forecast of $9.1bn to $9.7bn.
The news sent shares in the Santa Clara, California-based company down 17 cents to close at $20.32 on the Nasdaq. The stock fell 7 cents further in after-hours trading.
For several quarters, Intel has struggled with inventory and factory capacity problems. And it is widely known that the company has been losing market share to chief rival Advanced Micro Devices Inc. However, those gains have been minimal given that Intel still maintains a roughly 80% share of the world’s PC chip market.
Seems Wall Street took Intel’s warning as a sign of broader weakness in the PC chip market. Shares in Sunnyvale, California-based AMD also fell on the Nasdaq following the news, down more than 4% to close at $39.51. The stock recovered slightly in after-hours trading to $39.63.
Intel said its expenses, including R&D, are also expected to be lower in the current quarter than previously forecast, due to lower revenue- and profit-related spending, said the company.
Intel currently is in a standard government-mandated quiet period ahead of its earnings report on April 19.
