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Why Intel Stock Fell 28.58% Despite Strong Quarterly Results
Intel fell 28.58% on October 30 after forecasting fourth quarter revenue of $15–16 billion and adjusted earnings of 25 cents per share, below analysts’ roughly $17 billion and 43 cent estimates. Intel’s third quarter revenue rose 21% to $16.5 billion, and data center and AI revenue climbed 78% to $7.3 billion—but in...
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Key takeaways
- Intel fell 28.58% on October 30 after forecasting fourth quarter revenue of $15–16 billion and adjusted earnings of 25 cents per share, below analysts’ roughly $17 billion and 43 cent estimates.
- Intel’s third quarter revenue rose 21% to $16.5 billion, and data center and AI revenue climbed 78% to $7.3 billion—but investors focused on the weaker outlook.
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openai.comCreate a landscape editorial hero image for this Studio Global article: What caused Intel’s 28.58% share-price plunge on October 30, its worst one-day decline since July 1974, erasing about $140 billion in market. Article summary: Intel’s selloff was primarily a reaction to a much weaker fourth-quarter outlook: slowing PC demand, manufacturing constraints and heavy expansion spending raised doubts about its turnaround despite strong third-quarter . Topic tags: general, news, general web. Style: premium digital editorial illustration, source-backed research mood, clean composition, high detail, modern web publication hero. Use reference image context only for broad subject, composition, and topical grounding; do not copy the exact image. Avoid: logos, brand marks, copyrighted characters, real person likenesses, fake screenshots, UI text, readable text, watermarks, charts with fake numbers
Intel shares dropped 28.58% on October 30, wiping out nearly $140 billion in market value by one estimate. The key trigger was a fourth-quarter forecast well below Wall Street expectations, as Intel warned that PC demand and supply constraints were weighing on its business. Strong third-quarter results and rapid data center and AI growth were not enough to offset that weaker outlook. 10
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The forecast miss outweighed the earnings beat
Intel reported third-quarter revenue of about $16.5 billion, up 21% year over year. Adjusted earnings were 52 cents per share, above analysts’ 40-cent estimate, while data center and AI revenue rose 78% to $7.3 billion. 3
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But Intel’s fourth-quarter guidance pointed to a sharp slowdown. The company forecast revenue of $15 billion to $16 billion, compared with analysts’ expectations of about $17 billion. It projected adjusted earnings of 25 cents per share, versus an expected 43 cents. 17
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Intel also said it did not expect positive cash flow for the year, adding to investor concerns about the cost of expanding production while the PC market weakened. 17
PC weakness and memory costs cloud demand
Intel’s PC chip business was already under pressure: third-quarter sales fell 5% to $8.10 billion, and the company expected PC revenue to decline in the mid-20% range in the fourth quarter. Intel warned that the slowdown could continue through at least the first half of 2027. 18
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Higher memory prices are another headwind. Reporting cited memory costs and shortages as factors suppressing PC unit demand, while suppliers shifted capacity toward AI-related demand. Higher component costs can make PCs less affordable, adding pressure to purchases. 17
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Morningstar’s cited projections put PC unit sales down 12% in 2026 and a further 10% in 2027. Those figures are projections, not reported final shipment results. 23
Fab 28 blast added a separate supply disruption
A fatal explosion at Intel’s Fab 28 facility in Kiryat Gat, Israel, halted production for about two weeks. Reporting on November 1 said production had resumed. Two workers were reported killed and another seriously injured. 4
Intel’s early estimate put the incident’s impact at roughly $300 million in fourth-quarter revenue and 200 basis points—two percentage points—of gross margin. It expected a similar revenue impact in the first quarter, bringing the reported revenue hit to about $600 million across the two quarters. The available reporting does not establish a comparable first-quarter gross-margin estimate. 13
The factory disruption intensified supply concerns, particularly for server processors. But the weak PC outlook was the central explanation in coverage of the market reaction; the blast was an additional operational setback, not the only reason for the selloff. 17
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The market reaction and analyst view
Intel’s decline came amid a broader retreat in chip and technology stocks as investors weighed weaker PC demand and the costs of the AI buildout. 17 Bank of America downgraded Intel from Buy to Neutral and cut its price target from $145 to $100, citing weaker PC shipments and supply constraints that could delay the turnaround.
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Reports estimated the market value erased at nearly $140 billion, though published estimates varied. The stock’s 28.58% fall was described as its worst session since 1974. 10
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Intel fell 28.58% on October 30 after forecasting fourth quarter revenue of $15–16 billion and adjusted earnings of 25 cents per share, below analysts’ roughly $17 billion and 43 cent estimates.
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Intel fell 28.58% on October 30 after forecasting fourth quarter revenue of $15–16 billion and adjusted earnings of 25 cents per share, below analysts’ roughly $17 billion and 43 cent estimates. Intel’s third quarter revenue rose 21% to $16.5 billion, and data center and AI revenue climbed 78% to $7.3 billion—but investors focused on the weaker outlook.
Sources
finance.yahoo.comIntel stock plunges nearly 29%, its worst day since 1974
reuters.comIntel on course for worst day ever, triggers global chip rout
trendforce.com[News] Intel’s Mixed 3Q26: PC, Israel Fab Weigh on Guidance; EMIB Brightens as a Couple of Customers Near Announcement