Intel · Wall Street · Decrypt
Intel Stock Suffers Worst Crash in 50 Years as Weak Forecast Overshadows AI Chip Demand
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Intel shares plunged nearly 30% to $65.76 on Friday after the chipmaker issued a fourth-quarter forecast that fell well short of Wall Street expectations, overshadowing an otherwise strong earnings report.
Key facts
- Revenue climbed 21% year over year to $16.5 billion, while adjusted earnings per share reached $0.52, beating the company's guidance of $0.38 and Wall Street's $0.40 estimate
- The strongest performer was Intel's Data Center and AI division, which generated $7.3 billion in revenue, up 78% year over year and nearly 80% compared with the same period last year
- Intel expects fourth-quarter revenue between $15 billion and $16 billion, meaning its midpoint guidance of $15.5 billion is roughly $1.6 billion below the $17.07 billion analysts had anticipated
- In September 2025, Nvidia invested $5 billion in Intel and agreed to collaborate on custom processors for PCs and data centers
Summary
Intel shares plunged nearly 30% to $65.76 on Friday, wiping out more than $146 billion in market value as investors reacted to a disappointing fourth-quarter forecast. Intel expects Q4 revenue of $15 billion to $16 billion, well below Wall Street's $17.07 billion estimate, while adjusted earnings per share are forecast at $0.25 versus expectations of $0.43. Demand for AI server processors is booming, but manufacturing and packaging shortages are limiting production. The selloff wiped out more than $146 billion in market value, and translated into the worst single-day decline in more than 50 years.