Article · AI translation
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IT Home reported on October 30 that, after markets opened on October 30 local time, Intel shares plunged, falling more than 30% at one point during the session. The company's market value shrank by more than $137 billion (IT Home note: approximately 914.73 billion yuan at the current exchange rate), exceeding its largest one-day drop in 2024 (about 26%). If the decline reaches 31%, it will surpass the all-time record set on July 5, 1974.
Reuters reported that the plunge was mainly due to Intel issuing fourth-quarter guidance below market expectations and warning that problems including a weak personal computer market and rising memory prices could persist into the first half of 2027.
Intel's third-quarter 2026 earnings report showed that, although revenue rose 21% year over year to $16.51 billion (approximately 110.235 billion yuan at the current exchange rate), its fourth-quarter guidance fell short of market expectations, raising investor concerns about the prospects for a recovery in its business.
According to Reuters, Intel expects fourth-quarter revenue of $15 billion to $16 billion (approximately 100.153 billion to 106.83 billion yuan at the current exchange rate), below analysts' previous forecast of $17.07 billion (approximately 113.974 billion yuan at the current exchange rate). The company also said it would not achieve positive cash flow this year.
Weakness in the global PC market is one of the main reasons for the share-price decline. Intel expects revenue from its client computing business to fall more than 20% quarter over quarter in the fourth quarter, after a 5% decline in the previous quarter. Rising memory prices are increasing the cost of complete systems and weighing on consumer demand for new computers. Intel expects the PC market to remain weak until at least the first half of 2027.
In addition, an earlier explosion at Intel's factory in Israel has affected supply. According to Reuters, the company expects the incident to cause about $600 million (approximately 4.006 billion yuan at the current exchange rate) in lost revenue over 2 quarters. Meanwhile, Intel continues to invest heavily in AI chips and manufacturing, but capacity and supply-chain constraints make it difficult to fully meet demand from data center customers.
The share-price decline also spread to other semiconductor companies. Shares of AMD, Arm, Nvidia, Broadcom, Qualcomm, and Micron also fell to varying degrees, reflecting investor concerns about PC demand, memory costs, and the semiconductor industry's near-term growth prospects.
Related reading:
“Weak PC Market and Supply-Chain Disruptions: Intel's Guidance Misses Expectations, Shares Plunge 23% After Hours”
“Intel's Net Profit Attributable to Parent Company for the Third Fiscal Quarter of Fiscal 2026 Was $3.32 Billion, Down 18% Year Over Year”
“Intel's Q3 2026 Revenue of $16.5 Billion Beats Expectations: Data Center Business Surges Nearly 80%, Posting Its Strongest Growth in 15 Years”