Key Highlights

● Intel closed at $85.49 on October 22 as chipmakers sold off after Lam's warning.

● Lam guided December-quarter revenue to $8.6 billion, plus or minus $400 million.

● Intel was among the weakest performers in the Dow Jones Industrial Average.

● Intel reports its own results on October 29.

Intel (NASDAQ:INTC) tumbled on Thursday, October 22, 2026, closing at $85.49, as chipmakers were hammered after Lam Research (NASDAQ:LRCX)'s supply warning. Intel was among the weakest performers in the Dow Jones Industrial Average and among the heavy losers in the S&P 500. Reports differed on the size of the move.

Intel issued no company-specific news. The stock moved with a broad semiconductor selloff.

Lam's warning rattled the sector

Lam Research, one of the world's biggest makers of chipmaking equipment, reported after the bell on Wednesday. Its results were strong, with record revenue of $8.22 billion and adjusted earnings of $2.20 a share. But December-quarter revenue guidance of $8.6 billion, plus or minus $400 million, had a midpoint slightly below consensus, and the company cited supply constraints.

Lam's chief financial officer said revenue would have been higher without "near-term supply chain constraints that we are actively managing." He added that "things are going to continue to be constrained."

Lam's chief executive said clean-room and component constraints will "limit chip makers and equipment companies' ability to fully meet end demand" into 2027. He also sought to calm fears of a long squeeze, saying, "I think we'll be caught up very shortly."

Chip stocks fell together

The Philadelphia Semiconductor Index had its biggest one-day drop since June 23, according to market data. Lam itself plunged. KLA (NASDAQ:KLAC) and Applied Materials (NASDAQ:AMAT) tumbled. AMD (NASDAQ:AMD), Sandisk (NASDAQ:SNDK) and Marvell (NASDAQ:MRVL), along with Intel, all fell sharply.

Nvidia (NASDAQ:NVDA) closed at $212.21 and was one of the biggest drags on the S&P 500, according to market reports. Nvidia's chief executive said, "The demand of the capital is much greater than the availability of the capital."

The results from Meta Platforms (NASDAQ:META) on Wednesday evening also weighed on AI-related names. Meta narrowed its 2026 capital spending range to $135 billion to $145 billion and reported negative free cash flow of $2.12 billion, its first cash outflow in more than a decade, according to market data.

A split session

The S&P 500 fell 93.74 points to 7,663.43, its worst day since July. The Nasdaq Composite dropped 694.00 points to 26,008.86, its steepest decline since June 5. The Dow, however, edged up 11.89 points to 52,867.98, as gains in Procter & Gamble (NYSE:PG), Home Depot (NYSE:HD) and Johnson & Johnson (NYSE:JNJ) offset losses in Intel, Nvidia and Amazon (NASDAQ:AMZN).

About two of every three S&P 500 stocks rose, according to market reports. Staples had their best day since April 2025 and hit a record. The 10-year Treasury yield fell back below a closely watched threshold for the first time since September 22.

Intel's October 29 Report Faces Lam's Shadow

Intel's own results are the next big event for the stock. The earnings calendar lists the report for October 29, the same day as Amazon, Caterpillar (NYSE:CAT), third-quarter GDP and September PCE inflation data. Investors will look for comments on demand, supply and its manufacturing plans in light of Lam's warning.

Before that, Teradyne (NASDAQ:TER) reports on October 27, and the Federal Reserve announces its decision on October 28, along with results from Microsoft (NASDAQ:MSFT) and Alphabet (NASDAQ:GOOGL).

Analysts will also watch whether the chip index can hold support. Market data showed the Philadelphia Semiconductor Index closed just above its 200-day moving average, a level many traders follow closely.