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Intel stock plunges nearly 29%, its worst day since 1974
Yahoo Finance • • general
Key Points:
- Intel's data center business surged nearly 80% year-over-year, with strong Q3 results including adjusted EPS of $0.52 and $7.3 billion in data center revenue, beating estimates.
- Despite this, Intel's Q4 revenue and earnings guidance fell short of Wall Street expectations, forecasting $15-$16 billion in revenue and $0.25 EPS versus $17 billion and $0.43 expected, primarily due to a weak PC market.
- The stock plummeted nearly 29% on Friday, marking Intel's worst single-day drop since 1974 and erasing about $140 billion in market value, with the US government’s 9.9% stake losing over $10 billion in value.
- The PC market slump, driven by high memory prices due to AI data center demand, is expected to continue with PC shipments forecasted to decline 12% in 2026 and another 10% in 2027; an Israel factory accident will also reduce Q4 revenue by around $300 million.
- The broader tech sector also experienced declines following disappointing reports from Dell, HP, Alphabet, and Amazon, as analysts like Bernstein's Stacy Rasgon downgraded Intel’s price target citing the poor outlook.
