PomegraIntel Stock Plunges 28.6% After Q4 Guidance Miss
Why did Intel stock plunge 28.6%?
Intel (INTC) stock plunged 28.6% to $65.76 on Friday after its fourth-quarter guidance missed Wall Street targets, as a memory shortage hurt PC demand.
Key numbers
| Intel closing price (Oct 30) | $65.76-28.6% in one day |
|---|---|
| Q4 revenue guidance | $15.0–16.0Bvs $17.1B expected |
| Q4 adjusted EPS guidance | $0.25vs $0.43 expected |
| Q3 revenue | $16.5B+21% YoY |
| Data Center and AI revenue (Q3) | $7.3B+78% YoY |
| Q4 adjusted gross margin guidance | 38.0%vs 44.1% in Q3 |
What happened
Intel (INTC) stock plunged 28.6% to $65.76 on Friday after its fourth-quarter guidance missed Wall Street targets, as a memory shortage hurt PC demand. Intel's own forecast, called guidance, was for fourth-quarter sales of $15–16 billion and profit of 25 cents a share, versus the $17.1 billion and 43 cents analysts expected. That overshadowed a strong third quarter, when sales rose 21% to $16.5 billion. Intel blamed weak PC demand, a memory chip shortage and a plant explosion in Israel. Its finance chief expects the PC slowdown to last at least through the first half of 2027.
Why it matters
Intel is one of the world's biggest chipmakers, so its warning points to a wider squeeze on personal computers. Memory chips, which every PC needs, have become scarce and expensive, which raises PC prices and cuts demand. The sell-off also pulled down other chip and PC company stocks, so people who own tech funds may have felt it too.
Who this affects
- MarketbearishHigh impact
- Chip and PC stocks fell sharply, which hurt tech investors.
- CompanybearishHigh impact
- Intel shareholders lost over a quarter of its value.
- CompetitorsbearishMedium impact
- AMD, Qualcomm and Dell fell about 11% each, hurting rivals.
- IndustrybearishHigh impact
- PC makers face weak demand into 2027 on memory costs.
Intel vs AMD, Nvidia, Qualcomm
How we got here
Intel reports Q3 sales of $16.5B and guides Q4 to $15–16B after the close
Intel falls 28.6%, its worst day since 1974, on 447.8M shares traded
AMD drops 10.9% and Nasdaq falls 2.86% as chip stocks sell off
Israel plant shutdown hit to Q4 sales reported as $300M or $600M by different outlets
What to watch
- Whether memory chip supply and prices ease; Intel expects PC weakness through at least mid-2027H1 2027
- Intel's fourth-quarter results, to show if sales landed within its $15–16B guidanceQ1 2027
Educational content only. Not investment advice.
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