Intel Shares Plunge As Outlook Deteriorates
Intel's sharp share-price reversal has become a stark test of investor confidence in the semiconductor recovery. The chipmaker's stock fell as much as 26% on 30 October after a disappointing forecast for the final quarter, threatening its worst daily performance since 1974 and wiping out more than $100 billion in market value.
The sell-off followed results that were stronger than expected in several areas. Intel reported adjusted third-quarter earnings of $0.52 a share, while data centre revenue climbed to $7.3 billion, growth of almost 80% over the year. Investors nonetheless focused on what the company expects to earn next rather than what it has already delivered.
Intel forecast fourth-quarter revenue of $15 billion to $16 billion, below analysts' expectations of roughly $17 billion. Its projected earnings of $0.25 a share also missed forecasts near $0.43. The company linked the weaker outlook to softer demand for personal computers, as an AI-driven memory shortage raises prices for consumer devices.
Management expects PC shipments to fall about 12% this year and another 10% in 2027. An incident at Intel's factory in Israel is also expected to reduce fourth-quarter revenue by around $300 million. The setbacks complicate a turnaround that chief executive Lip-Bu Tan has described as a multiyear undertaking.
For the investment industry, the decline illustrates the danger of pricing a recovery before its earnings become durable. Intel's shares had nearly quadrupled between the start of 2026 and their June peak. Even after Friday's fall they remained considerably higher for the year, yet the sudden repricing shows how quickly optimism can turn when guidance disappoints.
The selling spread to PC manufacturers and other technology stocks as investors reassessed the cost of the AI boom. Intel remains a significant semiconductor business, but its prospects now depend on restoring supply reliability and navigating the weakness in consumer computing. That operational test, not another short-lived market rally, will shape confidence in its turnaround.