Intel stock plunges nearly 30% as weak outlook rattles investors
Shares fell as much as 30% in early trading Friday after the chipmaker forecast fourth-quarter revenue and earnings below Wall Street expectations. The company…
Intel stock plunges nearly 30% in early trading Friday after the chipmaker forecast fourth-quarter revenue and earnings below analysts’ expectations, wiping more than $100 billion from its market value. The sell-off came despite a strong quarter for its data center business.
The shares fell as much as 30%. A close below about $68 would make Friday’s decline worse than Intel’s drop in 2024, while a close below about $64.50 would mark the stock’s worst day on record, according to calculations using closing prices dating back to May 1973.
Intel forecast fourth-quarter revenue of $15 billion to $16 billion, below the roughly $17 billion analysts expected. It projected earnings per share of $0.25, compared with forecasts of $0.43.
Why did Intel shares fall?
The company’s outlook pointed to pressure in its PC business. Intel expects PC shipments to decline about 12% this year and another 10% in 2027, as demand for memory chips from AI data centers pushes up prices for laptops and desktop computers.
An accident at Intel’s factory in Israel will also reduce fourth-quarter revenue by about $300 million, the company said. That hit adds to the weaker PC market outlook and compounds the gap between Intel’s forecast and Wall Street’s expectations.
The contrast with the latest quarter was stark. Intel reported adjusted earnings per share of $0.52, topping estimates, while data center revenue rose to $7.3 billion. The company’s data center business had grown almost 80% in a year, but that strength did not offset concerns about the months ahead.
The forecast has consequences beyond Intel. PC makers Dell and HP also fell, adding to a wider technology stock sell-off that had hit Alphabet and Amazon after their reports earlier in the week. Higher memory costs and fewer expected PC shipments put pressure on manufacturers as they plan around Intel’s weaker demand outlook.
How much has Intel stock given back?
Intel shares had nearly quadrupled from the start of 2026 to a record on June 22. Even after Friday’s plunge, the stock remained up more than 80% for the year, but had surrendered about half its value since that peak.
The shares also fell below the $80 zone that had held at the July low and were on track for their lowest close since April 23. The following day, the stock gained about 24%, its best day since at least 1973.
Bernstein analyst Stacy Rasgon called the outlook “(in a word) terrible” and cut his price target to $75 from $110. Intel said the PC slump would persist until memory supply and prices return to normal.
CEO Lip-Bu Tan said on Thursday’s earnings call: “Rebuilding Intel is going to be a multiyear journey, and I remain firmly committed to making it happen.”
