Key Highlights

● Intel reported third-quarter results on Thursday, October 29, 2026.

● Adjusted EPS of $0.52 beat the $0.40 estimate.

● The outlook disappointed and Intel warned of cash burn.

● The warning set off a global chip rout.

Intel (NASDAQ:INTC)'s third-quarter report, released after the close on Thursday, October 29, 2026, beat on Earnings but disappointed on the outlook. The company posted adjusted earnings of $0.52 a share, above the $0.40 analysts expected, on Revenue of $16.51 billion, roughly in line with forecasts. But it guided fourth-quarter revenue to $15 billion to $16 billion, below a consensus of about $17.1 billion to $17.3 billion, and adjusted earnings of $0.25 a share, well under estimates.

The company also warned that it would burn cash this year. It cited a weak PC market tied to higher memory prices and availability, Manufacturing bottlenecks and a factory accident in Israel. Market preview said the explosion at the Kiryat Gat fab cut fourth-quarter revenue by about $300 million.

A historic drop

On Friday, October 30, Intel shares plunged to close at $65.76. According to market data, it was the steepest one-day drop on record; other outlets called it the worst day since 1974. Volume reached 447.8 million shares, far above average, according to market data.

BofA downgraded the stock to Neutral and cut its price target to $100 from $145, according to market data. A Bank of America (NYSE:BAC) analyst said the "agentic tide" in Data Center is "more than offset by PC/supply headwinds." One analyst called the guidance "a perfect storm."

Chief Executive Lip-Bu Tan said, "Despite near-term headwinds across the PC industry, Demand for our CPUs remains robust," according to market data. On the earnings call, he said, "In recent weeks, our customers began signaling a PC slowdown based on the memory prices and availability." He added, "Our OEM partners are aggressively managing inventory to match the softer sell-through."

Data center and AI revenue was a bright spot, rising to $7.3 billion.

The rout spreads

The warning hit chip stocks worldwide. The Philadelphia Semiconductor index plunged to 10,688.80. Advanced Micro Devices (NASDAQ:AMD), Qualcomm (NASDAQ:QCOM) and Marvell Technology (NASDAQ:MRVL) tumbled, while Nvidia (NASDAQ:NVDA), Broadcom (NASDAQ:AVGO) and Micron (NASDAQ:MU) also fell sharply. Market data said Nvidia lost about $185 billion in market value. ASML (NASDAQ:ASML) fell in both Europe and the US, and Taiwan Semiconductor (NYSE:TSM)'s US-listed shares declined.

PC makers were hit by Intel's view that the slowdown will last into 2027. Dell (NYSE:DELL), HP and Hewlett Packard Enterprise (NYSE:HPE) fell steeply. Memory and storage stocks, including Sandisk (NASDAQ:SNDK), Seagate (NASDAQ:STX) and Western Digital (NASDAQ:WDC), also slid.

The wider market

Intel's warning combined with Amazon (NASDAQ:AMZN)'s negative trailing free Cash Flow and the fallout from Alphabet (NASDAQ:GOOGL)'s record Thursday selloff to drive Wall Street's worst day since June. The S&P 500 fell 140.32 points to 7,580.07, the Dow Jones Industrial Average dropped 572.25 points to 51,770.31 and the Nasdaq Composite lost 747.73 points to 25,437.00. The Nasdaq-100 closed at 28,384.85.

"The message from investors is becoming clearer: strong AI demand is no longer enough on its own," said a senior market analyst according to market data.

What to watch

Investors will look for signs of how deep and how long the PC slowdown runs, and whether memory prices ease. Qualcomm reports on November 4, and Super Micro Computer (NASDAQ:SMCI) reports on November 3 after the close, offering more reads on hardware demand.

Apple (NASDAQ:AAPL)'s results on Monday, November 2, will show how a major PC and device maker sees the market. Beyond earnings, the October jobs report on Friday, November 6, and the Federal Reserve's December meeting will shape the backdrop for chip stocks heading into year-end.