Intel Shares Plunge Nearly 30% in Worst Single-Day Drop in Over 50 Years on Weak Q4 Guidance

Intel shares fell nearly 30% to $65.76 on Friday after the chipmaker issued fourth-quarter guidance well below Wall Street estimates, wiping out more than $146 billion in market value in its worst single-day decline in over 50 years. The forecast overshadowed a strong third quarter. Revenue rose 21% year over year to $16.5 billion, and adjusted earnings per share of $0.52 beat guidance of $0.38 and analysts' $0.40 estimate. The Data Center and AI division generated $7.3 billion in revenue, up 78% year over year, with $3 billion in operating profit. Intel guided fourth-quarter revenue to $15 billion to $16 billion, with the $15.5 billion midpoint about $1.6 billion below the $17.07 billion analysts expected. Adjusted EPS is forecast at $0.25 versus the $0.43 estimate, and non-GAAP gross margin is expected to fall to 38% from 44.1%. CFO Dave Zinsner cited weaker PC demand, manufacturing constraints on server processors and an accident at an Israeli factory. He called 2027 an investment year and warned investors not to expect positive free cash flow.