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Shares of %Intel ($INTC ) dropped more than 10% after the chipmaker reported disappointing second-quarter earnings, which it blamed on declining sales of personal computers (%PCs).

Intel reported earnings per share (EPS) of $0.29 U.S. versus $0.70 U.S. that was expected on Wall Street, according to Refinitiv data. The Santa Clara, California-based company’s Q2 revenue totaled $15.32 billion U.S. compared to $17.92 billion U.S. that was expected by analysts.

Intel’s revenue declined 22% year-over-year in the quarter that ended July 2, the largest decline since 1999. The company posted a $454 million U.S. net loss for the quarter, compared with net income of $5 billion U.S. a year earlier.

Regarding its forward guidance, Intel said it anticipates $0.35 U.S. in adjusted earnings per share on $15 billion U.S. to $16 billion U.S. in revenue for the current quarter.

The company lowered its full year adjusted earnings to $2.30 U.S. per share on revenue of $65 billion U.S. to $68 billion U.S. That’s down from previous guidance of $3.60 U.S. in adjusted earnings per share on $76 billion U.S. of revenue.

Intel said the poor earnings and lowered guidance are due to small and medium-sized businesses buying fewer computers.

During the second quarter, Intel’s Client Computing Group, which includes chips made for personal computers, generated $7.7 billion U.S. in revenue, down 25% from a year ago.

During the quarter, Intel launched its Habana Gaudi2 artificial-intelligence training chips that compete with Nvidia’s A100 graphics cards. Intel also announced plans to spin-off in an initial public offering (IPO) its %Mobileye autonomous driving unit later this year, depending on market conditions.

Intel’s stock is down 25% this year and currently trading at $39.71 U.S. per share.