Key Highlights

● Intel crashed on Friday, October 30, 2026, after a weak fourth-quarter outlook.

● It guided Revenue to $15 billion to $16 billion against about $17.3 billion expected.

● Adjusted EPS guidance of $0.25 compared with expectations of about $0.40.

● Third-quarter adjusted EPS of $0.52 beat the $0.40 estimate.

Intel (NASDAQ:INTC) crashed on Friday, October 30, 2026, after the chipmaker issued a fourth-quarter outlook that fell far short of expectations. Market reports described it as the steepest one-day drop on record for the stock, while other outlets called it Intel's worst day since 1974. Trading Volume swelled to 447.8 million shares, according to market data.

The Santa Clara, California-based company forecast fourth-quarter revenue of $15 billion to $16 billion, well below consensus estimates of roughly $17.1 billion to $17.3 billion. Consensus stood at $17.29 billion. Intel guided adjusted Earnings Per Share to $0.25, against expectations of about $0.40 to $0.43.

The forecast overshadowed a third quarter that, on the surface, looked respectable. Adjusted earnings per share were $0.52, above the $0.40 estimate, and revenue of $16.51 billion was roughly in line with forecasts or a slight miss. Data Center and AI revenue rose to $7.3 billion.

Cash burn and a factory accident

Intel also warned that it would burn cash this year. It cited a weak PC market tied to memory prices and availability, Manufacturing hurdles and heavy production spending. Market reports said that an explosion at the company's Kiryat Gat fab in Israel cut fourth-quarter revenue by about $300 million.

"Despite near-term headwinds across the PC industry, Demand for our CPUs remains robust," Chief Executive Lip-Bu Tan said. On the earnings call, he added, according to market data: "In recent weeks, our customers began signaling a PC slowdown based on the memory prices and availability." Tan also said, "Our OEM partners are aggressively managing inventory to match the softer sell-through." Intel expects the PC slowdown to last into 2027.

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

The ripple effect

Intel's warning set off a selloff across semiconductors. Advanced Micro Devices (NASDAQ:AMD), Qualcomm (NASDAQ:QCOM), Nvidia (NASDAQ:NVDA), Broadcom (NASDAQ:AVGO) and Micron (NASDAQ:MU) all fell, and the Philadelphia Semiconductor index closed at 10,688.80. PC makers Dell (NYSE:DELL) and HP slid on the prospect of a prolonged slump in personal computer demand.

The broader market suffered its worst day since June. The S&P 500 fell 140.32 points to 7,580.07, the Dow Jones Industrial Average lost 572.25 points to 51,770.31 and the Nasdaq Composite tumbled 747.73 points to 25,437.00, its worst session since June 5. The Russell 2000 dropped 47.37 points to 2,811.84.

Amazon (NASDAQ:AMZN)'s results, which showed negative trailing free cash flow, and continued weakness in Alphabet (NASDAQ:GOOGL) added to the pressure on technology. Investors rotated into energy, consumer staples, health care and utilities.

A senior market analyst said: "The message from investors is becoming clearer: strong AI demand is no longer enough on its own."

What to watch

Investors will look for further detail on Intel's cash position, the recovery timeline at its Israeli fab and the depth of the PC slowdown. Updates from PC makers and memory suppliers will offer clues about whether the weakness Intel described is spreading.

The coming week brings Apple (NASDAQ:AAPL)'s results on Monday, November 2, and Qualcomm's on Wednesday, November 4, both of which will be closely watched for signs of how the chip and device markets are holding up. The midterm elections on Tuesday, November 3, and the October jobs report on Friday, November 6, round out the calendar.