Intel Shares Plummet 26% on Disappointing Q4 Revenue Forecast
Intel's stock fell sharply after the company issued a disappointing revenue forecast, marking one of its worst days in decades.
Intel’s stock price experienced a significant decline of up to 26% on Friday, following the company’s disappointing revenue forecast for the fourth quarter. This drop erased more than $100 billion in market value and positioned the day as potentially the worst for Intel since 1974.
The expected revenue for the final quarter is between $15 billion and $16 billion, which falls short of analysts’ expectations of approximately $17 billion. Intel projected earnings per share of $0.25, significantly below the anticipated $0.43.
Despite achieving adjusted earnings per share of $0.52 and nearly 80% growth in data center revenue, Intel’s bleak outlook for the PC market overshadowed these results. The company anticipates a 12% drop in PC shipments this year, with an additional 10% decline expected in 2027. This downturn is primarily attributed to the strong demand for memory chips in AI data centers, which has raised prices for consumer laptops and desktops.
An accident at Intel’s factory in Israel is expected to cost about $300 million in revenue for the fourth quarter. Analyst Stacy Rasgon from Bernstein characterized Intel’s outlook as “(in a word) terrible,” prompting him to cut his price target for the stock from $110 to $75.
The decline in Intel’s stock comes on the heels of a remarkable year in which the stock nearly quadrupled until peaking in June. Analysts noted that Intel’s shares have since lost about half their value from that record high.
Intel’s current struggles also reflect wider challenges in the tech sector, with major companies like Dell and HP also experiencing stock declines. CEO Lip-Bu Tan stated, “Rebuilding Intel is going to be a multiyear journey, and I remain firmly committed to making it happen.”
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Bhupendra Singh Chundawat is a seasoned technology journalist with over 22 years of experience in the media industry. He specializes in covering the global technology landscape, with a deep focus on manufacturing trends and the geopolitical impact on tech companies. Currently serving as the Editor at Udaipur Kiran, his insights are shaped by decades of hands-on reporting and editorial leadership in the fast-evolving world of technology.