Key Highlights

● Intel shares plunged after hours on October 29 after closing the regular session at $92.07.

● Third-quarter Revenue reached $16.51 billion and adjusted EPS of $0.52 beat the $0.40 expected.

● Fourth-quarter revenue guidance of $15.0 billion to $16.0 billion fell well below consensus.

● Intel expects the PC slowdown to last through at least next year's first half.

Intel (NASDAQ:INTC) beat on third-quarter Earnings and posted surging data-centre sales, but a fourth-quarter forecast far below expectations triggered a steep after-hours sell-off.

A bad day turns worse

Intel slid during Thursday's regular session, closing at $92.07 as chip stocks retreated. After the bell, the decline turned into a plunge. Shares of Intel tumbled in after-hours trading on October 29, falling to about $77.96 according to one source and as low as about $71.63 according to another, depending on when the price was taken.

Reports of the after-hours drop varied widely through the evening, as is common in thin extended trading. One report said the stock fell especially steeply before paring some losses. Every account put Intel among the worst performers after the close.

The quarter beat

The third quarter itself was good. Revenue reached $16.51 billion, a strong increase from a year earlier. Adjusted earnings came in at $0.52 per share, well ahead of the $0.40 analysts expected.

The data-centre and AI business, known as DCAI, was the standout, with revenue of $7.32 billion, growing very rapidly from a year earlier.

The guidance shock

Then came the outlook. Intel guided fourth-quarter revenue to $15.0 billion to $16.0 billion, well below the roughly $17.05 billion to $17.1 billion consensus. It guided adjusted EPS to $0.25, against expectations of $0.43 to $0.44.

Intel also said it expects a PC slowdown to last through at least the first half of next year. PCs remain a core Business for Intel, so a prolonged slowdown matters. The gap between the strong quarter and the weak guide was the classic pattern of beating for the quarter and falling on the next one.

Chips under pressure

Intel's plunge capped a hard day for semiconductors. The PHLX Semiconductor index fell during the regular session, ending a four-day winning streak. Marvell (NASDAQ:MRVL) tumbled on reported talks to acquire Lumentum (NASDAQ:LITE), and Micron (NASDAQ:MU) and Sandisk (NASDAQ:SNDK) slid as memory stocks cooled. AMD (NASDAQ:AMD) declined. KLA (NASDAQ:KLAC) was a rare riser after strong results.

Alphabet (NASDAQ:GOOGL)'s worst day since its 2004 IPO set the tone, reviving concerns about AI costs. One market analyst said "markets are no longer rewarding companies simply for investing heavily in AI."

Futures slide

Intel's after-hours drop, together with Amazon (NASDAQ:AMZN)'s, pushed Nasdaq-100 futures and S&P 500 futures lower Thursday evening, according to market data. Dow futures edged up.

During the regular session, the S&P 500 slipped 23.59 points to 7,720.39 and the Nasdaq Composite lost 365.13 points to 26,184.72. Still, more than 400 S&P 500 members rose, and the Russell 2000 gained 28.71 points to 2,859.22. One market strategist said, "Money is rotating within the market rather than leaving it."

Intel's numbers also landed at an awkward moment for investors weighing the economy. Third-quarter GDP accelerated from the second quarter and beat forecasts, with business Investment surging, yet Intel still warned of softer PC Demand ahead, a sign that strong aggregate spending is not reaching every corner of the tech market.

What to watch

Friday's regular session will show how much of Intel's after-hours decline holds once full trading resumes. Investors will dig into management's commentary on the depth of the PC slowdown and on whether data-centre strength can offset weakness elsewhere.

Margins will be another focus, with investors weighing the gross Margin Intel guided for the coming quarter. Rivals including AMD and chip suppliers will be watched for read-through.

Beyond Intel, Friday brings the Employment Cost Index, and the Federal Reserve's December 8–9 meeting, where futures lean toward a hike, remains a key backdrop for semiconductor stocks after a bruising day for the sector.