Why it matters
- Intel closed at $65.76 on Friday, Oct. 30, down 28.6% from Thursday's $92.07, according to Yahoo Finance daily data. That is its steepest one-day drop in Yahoo's daily series, which begins in March 1980.
- Intel forecast fourth-quarter revenue of $15.0 billion to $16.0 billion and non-GAAP EPS of $0.25. Analysts had expected about $17.08 billion and $0.44, Investing.com reported.
- Third-quarter revenue rose 21% to $16.5 billion and data center sales jumped 78%, but Intel said it sees the PC slowdown lasting at least through the first half of 2027.
Intel shares plunged 28.6% on Friday, Oct. 30, after the chipmaker forecast fourth-quarter sales and profit well below Wall Street's expectations and warned that a slump in personal computers will last into next year. The stock closed at $65.76, down from Thursday's close of $92.07, according to Yahoo Finance daily data.
It was the worst day for Intel's shares since 1974, Yahoo Finance reported, citing closing prices back to May 1973. In Yahoo Finance daily data, which begin in March 1980, no session comes close: the previous steepest drop was 26.1% on Aug. 2, 2024. The shares touched $63.20 during the day, and about 448 million shares changed hands, more than three times Thursday's volume.
Why did Intel stock fall today?
The outlook, not the quarter, drove the sell-off. Intel said in its earnings release on Thursday, Oct. 29, that it expects fourth-quarter revenue of $15.0 billion to $16.0 billion and non-GAAP earnings of $0.25 a share. Analysts had expected revenue of $17.08 billion and EPS of $0.44, Investing.com reported. Intel also guided its non-GAAP gross margin down to 38.0%, from 44.1% in the third quarter.
Chief Financial Officer David Zinsner said in the release that "we see the PC slowdown continuing at least through the first half of next year." Yahoo Finance reported that Intel expects PC shipments to fall about 12% this year and another 10% in 2027, as AI data centers soak up memory chips and push up laptop and desktop prices. It also reported that an accident at Intel's factory in Israel will cost about $300 million of fourth-quarter revenue.
Bernstein analyst Stacy Rasgon called the outlook "(in a word) terrible" and cut his price target to $75 from $110, according to Yahoo Finance.
Intel third-quarter 2026 results at a glance
| Measure | Q3 2026 | Q3 2025 |
|---|---|---|
| Revenue | $16.5 billion | $13.7 billion |
| Data Center and AI revenue | $7.3 billion (up 78%) | n/a |
| Client Computing and Physical AI revenue | $8.1 billion (down 5%) | n/a |
| Intel Foundry revenue | $6.7 billion (up 58%) | n/a |
| Non-GAAP gross margin | 44.1% | 40.0% |
| GAAP diluted EPS | $0.60 | $0.90 |
| Non-GAAP diluted EPS | $0.52 | $0.23 |
Source: Intel third-quarter 2026 earnings release (Exhibit 99.1 to Form 8-K). Segment changes are year over year, as reported by Intel.
The quarter itself beat forecasts. Non-GAAP EPS of $0.52 topped the $0.40 analysts expected, and revenue was slightly above the $16.48 billion consensus, Investing.com reported. Intel said it had its strongest data center revenue growth in 15 years. Chief Executive Lip-Bu Tan said in the release that "demand for our CPUs remains robust" and that Intel's priority is "to unlock additional supply" for its Xeon server chips.
How did the wider market react?
Chip and tech stocks fell with Intel. The Nasdaq Composite dropped 2.9% to 25,437.00 and the S&P 500 fell 1.8% to 7,580.07, Yahoo Finance data show. Amazon also slipped after its own report; read our story on Amazon's third-quarter results and AWS growth.
Even after Friday's drop, the stock is still up more than 70% this year, Yahoo Finance reported. For more chip coverage, see our story on TSMC's third-quarter profit, and follow the latest earnings in our companies section and markets coverage.
Sources
- Intel Corp., Intel Reports Third-Quarter 2026 Financial Results (Exhibit 99.1 to Form 8-K, Oct. 29, 2026)
- Yahoo Finance, Jared Blikre, Intel stock plunges nearly 30%, on pace for its worst day since 1974 (Oct. 30, 2026)
- Investing.com, Intel plummets over 28% as weak forecast overshadows earnings beat (Oct. 30, 2026)
- Yahoo Finance, chart data for Intel (INTC), daily, Intel daily history since 1980, Nasdaq Composite and S&P 500
