Intel Falls 25% Pre-Market, Threatening $123 Billion Loss in Market Value

Key Facts

Intel shares fell about 25% in pre-market trading on Friday, October 30, threatening to erase more than $123 billion from its market value if the decline continued during the session, according to Reuters via Investing.com. The sell-off came after the company forecast fourth-quarter 2026 revenue of between $15 billion and $16 billion. That range is below the average analyst estimate of $17.07 billion, reviving concerns about the company’s recovery. Chief Financial Officer David Zinsner also said the company does not expect positive cash flow this year. The stock closed at $92.07 on October 29, according to EL7 data.

The pressure extended to semiconductor companies in pre-market trading, with shares in the sector falling between 2% and 9%, according to Reuters via Investing.com. Server makers’ shares also fell between 6% and 12%, signaling that concerns over supply constraints and weak demand were spreading. In Europe, the STOXX Europe 600 Technology index fell 2%, while U.S.-listed shares of TSMC declined 3.9%, according to Reuters via MarketScreener. Equity analyst Matt Britzman said the market was adopting a “sell first, ask questions later” mood. He added that Intel’s warning gave investors a reason to trim their chip holdings.

The company’s forecast reflects pressure on revenue from its PC chip business. Reuters reported that Intel expects revenue from the business to decline by a mid-20s percentage range in the fourth quarter. Chief Executive Lip-Bu Tan linked weak PC demand to manufacturing supply shortages and unprecedented pressure in the memory market. Tan said: “We are facing near-term challenges, including manufacturing supply shortages, an unprecedented memory crunch and the resulting weakness in PC demand.” Reuters reported that higher memory prices are raising PC costs and weighing on demand. These pressures are making it difficult for the company to keep pace with demand for its products as demand in the PC market weakens.

An explosion at Intel’s plant in Kiryat Gat, Israel, added a constraint on supply after operations were halted for nearly two weeks in October. The company told Reuters the incident would reduce revenue by about $600 million over two quarters and cut supplies of AI server chips. Intel lowered its fourth-quarter revenue forecast by about $300 million and cut its gross margin forecast by about 200 basis points, according to Reuters via Euronext. Zinsner said the company expects a similar impact in the first quarter of 2027. A Reuters report, citing media reports, said the explosion killed two people and left a third seriously injured.

Intel’s decline came during a broader pre-market downturn in U.S. markets: S&P 500 futures fell 1%, while Nasdaq futures dropped 2.3% on Friday morning, according to the Associated Press. These figures describe the broader market move, while chip and server share declines showed pressure spreading to companies linked to supply chains and data centers. On spending, the chief financial officer said the company remained on track for capital expenditure of $20 billion in 2026. He added that spending would rise sharply in 2027 to secure more chipmaking equipment. The estimated market value loss of more than $123 billion remains contingent on the stock continuing to fall during Friday’s session.