Intel plunges 29% in record one-day crash after guidance badly misses estimates
ivan_bezdomny · x · 2026-10-30
Intel shares fell as much as 29% on Friday — on pace for its steepest one-day percentage drop on record — after weak guidance, dragging the Nasdaq 100 down 3% and wiping $940B from US stocks in early trading as Amazon slid 6% on its own earnings.
Key facts:
- Q4 guidance: revenue of $15–16B and adjusted EPS of $0.25 vs consensus $17.1B and $0.43; adjusted gross margin to fall to 38% from 44.1%.
- Management blamed rising memory prices hurting PC demand through at least H1 2027, an October accident at the Kiryat Gat fab ($300M Q4 revenue hit), and packaging shortages limiting data center output.
- BofA's Vivek Arya downgraded to neutral, cutting his target from $145 to $100, citing a 25–30% sequential PC shipment drop and products not competitive with AMD/ARM rivals growing 2x–4x faster.
- Q3 data center & AI revenue rose 78% YoY to $7.3B, but Intel Foundry lost $1.9B on $6.7B revenue, only $411M from external customers.
The poster notes AI-fueled hopes of "infinite compute demand" had rescued Intel — until earnings brought it back to earth.
Related event: Intel Shares Plunge as Strong Data Center Growth Offset by Weak Q4 Guidance(6 posts)→
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