Intel forecast fourth-quarter revenue of $15B to $16B, below the $17B analysts expected, as a memory chip shortage hits PC demand and supply problems slow its data centre unit. Shares fell more than 20% in late trading. Third-quarter revenue rose 21% to $16.5B.

Intel shares fell more than 20% in late trading on Thursday after its sales forecast missed Wall Street’s estimates, Bloomberg reported . A slump in PC sales and supply problems in its data centre business weighed on the outlook.

Intel expects fourth-quarter revenue of $15B to $16B, below the $17B analysts expected on average. It forecast adjusted earnings of 25 cents a share, against estimates of 43 cents.

PC makers are struggling with a shortage of memory chips , which has pushed up prices and cut demand for laptops and desktops. Intel expects the PC market to shrink 12% this year and another 10% in 2027. PC makers have hit their limit on what they can pay for memory, research firm TrendForce said in September.

“ Memory pricing went up a lot.…