Intel Plunges Up to 29% After Weak Q4 Guidance Signals Deepening PC Slump

Intel shares collapsed as much as 29% on October 30, on pace for the worst single-day percentage drop in the company's history, after its fourth-quarter revenue guidance came in far below Wall Street expectations. The chipmaker said it expects Q4 revenue of $15 billion to $16 billion and adjusted earnings per share of $0.25, against analyst consensus of roughly $17 billion in revenue and $0.43 in EPS. Some projections had topped $18 billion, making the miss particularly jarring.

The disappointing outlook overshadowed an otherwise solid third quarter. Intel's data center revenue surged 78% year over year to $7.3 billion, and overall results beat the company's own guidance on revenue, gross margin, and earnings. Chief Financial Officer David Zinsner said the company sees "the PC slowdown continuing at least through the first half of next year," and supply-chain problems with data center components compounded the pressure on the forward outlook.

The selloff rippled across the semiconductor sector and broader market. AMD fell roughly 9% and Micron lost around 6%. The Nasdaq 100 sank approximately 2.8% at the open and was still down about 2.6% by early afternoon, while the S&P 500 slid around 1.3%. Amazon's own results, which deepened concerns about AI capital spending, added to the technology rout. UBS analyst Timothy Arcuri cut his Intel price target to $80 from $100, calling the guidance "well below even the most bearish investor expectations," and the VIX spiked alongside the broad selloff.