Intel confronts PC market slowdown while data center and AI segments drive growth

Intel Corp. is contending with a weakening personal-computer market and ongoing supply-chain constraints that are expected to limit near-term earnings momentum. Analysts note that the total addressable market for PCs is projected to fall 12% in 2026 and another 10% in 2027, reducing the likelihood of a short-term recovery.

At the same time, the company's data-center and artificial-intelligence segments are forecast to sustain robust growth, providing a counterbalance to the PC downturn. The market has priced these challenges into Intel's valuation, with the FY2028 earnings-per-share multiple falling to roughly 21 times.

"Data-center and AI revenue is expected to maintain its strong growth momentum, offering a hedge against the PC headwinds," the article states.

The analyst suggests that the current price may present an opportunity for investors willing to assume risk, describing the situation as a chance to "catch the falling knife before the coast is clear." The commentary includes disclosures that the author holds no positions in Intel and receives no compensation beyond the platform hosting the article.