Intel plunges 29% as revenue outlook falls $17.07 billion short of expectations

Key Facts

U.S. chip stocks fell on October 30 after Intel’s fourth-quarter outlook failed to reach the analyst consensus revenue forecast of $17.07 billion, according to LSEG data cited by Reuters. The company’s shares dropped about 29%, their worst session since 1974, according to the Associated Press. The selloff spread to other U.S. chipmakers, with Nvidia, Broadcom, AMD, Arm, Qualcomm and Micron shares falling between 4% and 12%, Reuters reported. Nvidia closed at $204.64, compared with $213.66 the previous day, according to EL7 data. Intel closed at $65.76, down from $92.07 in the previous session, according to the same data.

The losses followed quarterly results from Intel showing revenue growth, but the outlook revealed a divergence between its businesses. Third-quarter revenue was $16.5 billion, up 21% year over year, according to the company’s filing with the U.S. Securities and Exchange Commission. Reuters reported revenue of $16.51 billion, in line with estimates, while adjusted earnings were 52 cents per share, above forecasts of 40 cents. But revenue at the Client Computing and Physical AI Group fell 5% to $8.1 billion, while revenue at the Data Center and AI Group rose 78% to $7.3 billion. The divergence highlighted strong demand for data center processors alongside pressure on Intel’s PC chip business.

The PC chip business was a major source of concern, accounting for about half of Intel’s third-quarter revenue, Reuters reported. The company’s chief financial officer said the slowdown in the personal computer market could continue "at least through the first half of next year," or through the first half of 2027. Reuters added that rising memory prices weighed on the PC chip business as suppliers redirected production toward high-bandwidth memory chips used in AI systems. Intel’s outlook implies a decline in PC chip revenue in the mid-20% range in the fourth quarter, after a 5% drop to $8.10 billion in the third quarter, Reuters said. That combines weak device demand with higher component costs as the company’s data center-related revenue expands.

The pressure extended to U.S. server makers, with Dell, Hewlett Packard Enterprise and Super Micro Computer shares falling between 6% and 11% on October 30, Reuters reported. Outside the United States, South Korea’s KOSPI fell 3.5%, and Samsung Electronics shares dropped about 3%. The moves show how the selloff spread across chipmakers, server companies and Asian markets tied to AI. The decline also followed a more than doubling in Intel’s share price during 2026, after gains of more than 80% in the previous year, Reuters reported. The stock had entered the session after a period of strong gains, before a weaker growth outlook refocused investors on the company’s ability to sustain its recovery.

Concern about Intel coincided with a broader decline in U.S. stocks. The Nasdaq Composite fell 2.9% to 25,437 points on October 30, while the S&P 500 dropped 1.8% to 7,580.07 points, according to the Associated Press. The agency linked the shift in investor views on AI to a move from optimism to demands that companies show results; an investment portfolio manager said: "We’re moving from the hopes and dreams phase of the AI trade to the show-us-the-results phase." In this context, Intel’s strong data center revenue came alongside weakness in its PC business, as investors assess whether growth in AI infrastructure will match its costs. Markets are looking ahead to the fourth quarter, when the company expects a sharp decline in PC chip revenue.