Catenaa, Friday, October 30, 2026- Intel stock plunged by 30% on Friday after the chipmaker’s fourth-quarter revenue guidance fell short of Wall Street estimates.
Accordingly, Intel released fourth-quarter revenue guidance of $15 billion to $16 billion, while analysts had expected an average of $17 billion, with a few forecasts above $18 billion, according to Bloomberg.
Intel forecast adjusted earnings of 25 cents a share for the quarter. Analysts projected 43 cents, according to Bloomberg.
Soft PC chip sales and supply constraints in the company’s data center operations dragged down the outlook, according to Bloomberg.
Intel stock plunged as much as 30%, and it is down more than 44% since September 30.
Yahoo Finance’s analysis of historical Norgate Data records indicates that Intel has experienced comparable daily share-price declines on only two previous occasions: July 5, 1974, and August 2, 2024.
Based on Yahoo Finance’s calculations, a close below about $68 would mark Intel’s steepest daily decline since 1974, while a finish below $64.50 could set a new record.
Intel Chief Lip-Bu Tan told Bloomberg that the data center unit would have posted stronger results without a shortfall in certain raw materials and the closure of an Israeli factory. “I am a bit disappointed in terms of how we cannot fulfill the customer requirements,” Tan told Bloomberg.
Third-quarter revenue totaled $16.5 billion, up 21%. Earnings came in at 52 cents a share for the quarter ended September 26. Revenue matched the average analyst estimate, and analysts projected 41 cents a share, Bloomberg reported.
Memory is among the biggest obstacles facing the PC market, Tan told Bloomberg. “Memory pricing went up a lot. I think my prediction is that in 2027 it is going to be a very severe issue for all of us,” Tan said.
According to Yahoo Finance, AI data centers are soaking up the world’s memory chips, pushing up laptop and desktop prices.
Intel anticipates a 12% decline in PC shipments this year and another 10% in 2027. Separately, an accident at its Israel factory will cost about $300 million in fourth-quarter revenue, Yahoo Finance reported.
Yahoo Finance reported that Bernstein analyst Stacy Rasgon called the outlook “(in a word) terrible” and cut his price target to $75 from $110.
Intel had planned to raise prices on its PC processors by 10% in October, in line with the surge in memory component prices.
