Intel Shares Plunge 29% in Worst Day Since the 1970s

Intel shares fell 29% on Friday (30 October), their worst day since the 1970s, after the chipmaker forecast weaker-than-expected fourth-quarter results because of a slowing PC market and a deadly explosion at one of its plants in Israel. The drop wiped about $12bn off the value of the US government’s 10% stake in the company, according to CNBC.

The sell-off capped a brutal week for technology shares, as investors questioned the vast sums being spent on artificial intelligence and punished companies whose results or forecasts fell short. The Nasdaq Composite fell 2.9% on Friday alone.

Why Did Intel Shares Crash?

The problem was the outlook, not the past quarter. Intel said it expects fourth-quarter revenue of $15bn to $16bn and adjusted earnings of 25 cents a share. Analysts surveyed by LSEG had expected revenue of $17.1bn and earnings of 43 cents, so the forecast fell well short on both measures.

The third quarter itself was solid. Revenue rose 21% from a year earlier to $16.5bn, and adjusted earnings came in at 52 cents a share. Chief financial officer David Zinsner said revenue, gross margin and earnings had all beaten guidance, “including our strongest data center revenue growth in 15 years”.

But he warned of a prolonged downturn in personal computers, still a core market for Intel. “We see the PC slowdown continuing at least through the first half of next year,” Mr Zinsner said. CNBC reported that PC makers are being squeezed by soaring prices for memory and other components, and that global PC shipments fell 4% in the second quarter, according to Counterpoint Research.

What Happened at Intel’s Plant in Israel?

The guidance also reflects an explosion earlier this month at an Intel fabrication plant in Israel, which killed two workers and seriously injured a third. Chief executive Lip-Bu Tan called it an “unfortunate and tragic accident” and said it had caused an “extended shutdown” at the site, affecting shipments of 10-nanometre chips. Mr Zinsner said the incident would cost about $600m in lost revenue over two quarters.

How Big a Setback Is This for Lip-Bu Tan?

It is a serious blow to the turnaround plan Mr Tan has led since he was hired in March 2025. Before Thursday’s results, Intel shares had risen about 150% this year, helped by demand for central processors used in “agentic” AI workloads, and investors had begun to believe the company’s recovery was under way.

Analysts at D.A. Davidson downgraded the stock to neutral from buy in a note titled “Not fixed yet”. “We understand the PC market is being impacted at the industry level,” they wrote. “However it is hard to justify the current multiple when weakness is so significant.”

The foundry business, which makes chips for other companies, remains central to the turnaround. Intel is the only US-based maker of advanced logic chips and is in high-volume production of its 18A chips at a new plant in Arizona, but it still has no external customers for them. “We’re going to have a couple of customers ready to announce the next two quarters,” Mr Tan said on the earnings call.

What Does It Mean for the US Government’s Stake?

The Trump administration took a 10% stake in Intel just over a year ago as part of its push to rebuild US chipmaking. CNBC said the investment remains profitable despite Friday’s fall, but its value dropped by about $12bn in a single session. Nvidia, which also took a large stake in Intel, saw the value of its holding fall by about $6bn.

How Did Other Tech Stocks Fare?

Intel was not alone. Alphabet suffered its worst day on record on Thursday, falling more than 12%, and fell again on Friday. Among chipmakers, Qualcomm dropped 11%, Broadcom more than 5% and Nvidia 4%.

Amazon slipped 1.4% after missing forecasts for revenue and profit while keeping its plan to spend about $220bn on capital projects in 2026. It also reported negative free cash flow for a second consecutive quarter. Separately, CNBC reported on Saturday that OpenAI had cut the target for its latest funding round to up to $20bn, from about $30bn, amid the broader sell-off.

The turbulence follows the Federal Reserve’s decision this week to hold interest rates steady, and comes days before the US midterm elections. Big technology companies have also been cutting costs, with Microsoft offering voluntary buyouts to staff.

What Should Investors Watch Next?

Investors will look for evidence that Intel can sign the foundry customers Mr Tan has promised, and for signs that the PC market is stabilising. The Israeli plant’s return to full production will also matter for the first half of 2027. As always, a single day’s fall does not by itself say much about a company’s long-term prospects, and readers should not treat this report as investment advice. Our guide to US stock market opening hours explains when shares trade.

Featured image: Intel’s headquarters in Santa Clara, California, in 2023, by Coolcaesar / Wikimedia Commons, CC BY-SA 4.0. File photo.

Sources

• CNBC — Intel stock has worst day since 1970s, wiping about $12 billion off government’s stake (30 October 2026).
• Intel — Intel Reports Third-Quarter 2026 Financial Results (29 October 2026).
• CNBC — OpenAI pares fundraising goal, now seeking up to $20 billion in latest round (31 October 2026).