As technology companies are feeling the full brunt of the global economic crisis, as demand for software and hardware slows.
The chip maker expects fourth-quarter revenue of $8.2 billion, down 20% compared to the previous quarter. Intel revised its fourth-quarter expectations ahead of its scheduled earnings announcement on Jan. 15.
Intel said it will take a much higher loss on other equity investments than it expected. The company will note a noncash charge in the fourth quarter of $950 million related to its investment in Clearwire Corp., which has a WiMax mobile broadband network.
Intel was one of five companies that invested $3.2 billion last year in Clearwire along with Google, Comcast, Time Warner Cable and Bright House Networks.
Clearwire's stock hit a peak of more than $17 per share in February 2008, but has steadily fallen. It traded Wednesday around $5.09 a share.
Overall, Intel expects to lose between $1.1 billion and $1.2 billion on equity investments rather than the $50 million it previously expected to lose.