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Economy

Intel Shares Fall 29% in Worst Day Since 1974 After Weak Fourth-Quarter Forecast

Intel shares fell nearly 29% on Friday after the chipmaker forecast fourth-quarter revenue and earnings well below Wall Street estimates, wiping about $12 billion off the value of the U.S. government's stake.

By admin Oct. 31, 2026 · 6:44 PM ET 2 min read

A computer monitor on a desk showing a blurred stock chart with a falling red line
A computer monitor on a desk showing a blurred stock chart with a falling red line

Intel shares fell nearly 29% on Friday, Oct. 30, in the company’s worst single trading day since July 1974, after a weak forecast for the holiday quarter outweighed a third quarter that beat expectations.

Intel reported third-quarter revenue of $16.5 billion, up 21% from a year earlier, according to Reuters, with adjusted earnings of 52 cents a share against 40 cents expected. Data center and AI revenue rose 78% to $7.3 billion.

Close-up of black computer processor chips mounted on a green circuit board
Close-up of black computer processor chips mounted on a green circuit board

Forecast falls short of Wall Street estimates

The forecast that came with the results fell short. Intel guided fourth-quarter revenue to $15 billion to $16 billion, below the $17.1 billion analysts expected, according to LSEG data, with adjusted earnings of 25 cents a share against 43 cents expected and gross margin falling to 38.0% from 44.1%.

Finance chief David Zinsner said in the earnings release, “We see the PC slowdown continuing at least through the first half of next year.” Client computing revenue slipped 5% to $8.1 billion in the quarter.

An open laptop with a blank dark screen on a wooden desk beside a notebook and a cup of coffee
An open laptop with a blank dark screen on a wooden desk beside a notebook and a cup of coffee

Shutdown in Israel and a hit to the government stake

The outlook also reflects an explosion at Intel’s Kiryat Gat plant in Israel earlier this month that killed two workers and seriously injured a third, CNBC reported. Zinsner said the blast will reduce revenue by about $600 million across two quarters. Chief Executive Lip-Bu Tan called the explosion an “unfortunate and tragic accident” that caused an extended shutdown at the plant, affecting shipments of 10-nanometer chips.

The drop cut about $12 billion off the value of the U.S. government’s 10% stake in Intel, according to Bloomberg estimates cited in market coverage. The selloff spread across the sector on Friday, with Nvidia falling 4%, Broadcom dropping more than 5% and Qualcomm falling 11%, while the Nasdaq Composite slid 2.9%. Analysts at D.A. Davidson downgraded Intel to neutral from buy in a report titled, “Not fixed yet.”

Workers in white cleanroom suits walking between rows of chip-making machines in a semiconductor factory
Workers in white cleanroom suits walking between rows of chip-making machines in a semiconductor factory

Intel is the only U.S.-based manufacturer of advanced logic chips, CNBC reported, and is now in high-volume production of its most advanced 18A chip at a new fab in Arizona, with a second Arizona fab expected to begin operations by the end of 2028. The company still has no external customers for its new chips. Tan said on the earnings call, “We’re going to have a couple of customers ready to announce the next two quarters.”

Heading into Thursday’s earnings report, Intel shares were up about 150% this year, buoyed by demand for central processors used in AI workloads.

Reporting based on coverage by CNBC and Zark News.

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