Intel Shares Plunge 30% After Weak PC Market Forecast

Shares of Intel Corporation plummeted between 25% and 30% on October 30 and 31, 2026, erasing over $140 billion in market value. The collapse followed a fourth-quarter revenue forecast of $15 billion to $16 billion, which missed analyst estimates of approximately $17 billion. The company warned that a global PC market slowdown, driven by high memory chip prices and supply chain bottlenecks, will persist through the first half of 2027.

Despite the forecast, Intel reported third-quarter revenue of $16.5 billion, a 21% year-over-year increase. This growth was fueled by a 78% surge in data center and AI revenue to $7.3 billion, marking the segment's strongest growth in 15 years. However, these gains were offset by a 5% decline in client computing revenue and a $1.85 billion operating loss in its foundry business.

Financial pressures were exacerbated by an October 14 explosion at the Fab 28 plant in Kiryat Gat, Israel, which killed two workers and caused a two-week production halt. Intel expects the accident to cost between $300 million and $600 million in lost revenue over two quarters. Additionally, the company does not expect positive cash flow this year due to approximately $20 billion in capital expenditures for manufacturing expansion in Arizona and Ohio.

To mitigate losses, Intel is redirecting factory capacity in Oregon from PC chips to data center production. The sell-off triggered a broader semiconductor rout, dragging down shares of competitors including AMD, Nvidia, and Arm Holdings.