Intel (INTC) Shares Fall 29% on Weak Guidance and Plant Shutdown

Published on 10/30/2026 · Source: cnbc.com

AI Summary

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Intel (INTC) shares fell 29% on Friday, marking the company's worst day on Wall Street since 1974. The drop followed weaker-than-expected guidance, citing a plant shutdown in Israel and ongoing softness in the PC market. This decline was on track to become Intel's second-steepest drop on record.

The company expects adjusted earnings per share of 25 cents for the quarter, with revenue between $15 billion and $16 billion. The share price setback is a challenge for CEO Lip-Bu Tan, who joined in March 2025 and has been working to revive the company after missing the early artificial intelligence boom. Despite this, Intel shares had gained about 150% so far in 2026, supported by demand for central processors critical to AI workloads.

The broader semiconductor sector also experienced declines, with Nvidia down 4%, Broadcom dropping about 6%, and Qualcomm tumbling 12%. The NASDAQ Composite fell over 2.5%, influenced by rough tech earnings overall. For investors, the guidance highlights the impact of weaker PC market demand and supply disruptions on Intel's near-term revenues and earnings, signaling challenges for the semiconductor industry linked to AI expansion efforts.

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Our take

Opinion from the Newsstocks AI desk, not investment advice

Intel's sharp share price decline reflects investor concerns about the impact of a plant shutdown and a weak PC market on earnings. While AI demand had boosted shares earlier in the year, this guidance shows continuing challenges. The situation will remain negative until Intel demonstrates stability in revenue and supply chain improvements.

Key numbers

Share price drop: 29%
Adjusted EPS forecast: 25 cents
Revenue forecast: $15 billion and $16 billion
Year-to-date share gain: 150%

What could help

Growing demand for AI-related central processors has supported Intel's shares prior to the guidance downgrade.

What could hurt

PC market weakness and a plant shutdown in Israel are impacting Intel's near-term revenue and earnings forecast.

The background

Companies issue guidance to forecast their upcoming earnings and sales, which investors use to evaluate business health. A share price drop following weak guidance reflects investors adjusting expectations.

Questions readers ask

Why did Intel shares fall 29% on Friday?

Intel's shares fell 29% due to weaker-than-expected guidance caused by a plant shutdown in Israel and softness in the PC market.

What earnings forecast did Intel provide?

Intel expects adjusted earnings per share of 25 cents and revenue between $15 billion and $16 billion this quarter.

How has Intel's stock performed so far in 2026?

Before the recent drop, Intel shares were up about 150% year to date, driven by AI-related demand for central processors.

About Intel Corporation (INTC)

Intel is a foundational semiconductor company that designs and manufactures CPUs for PCs and servers and is investing to rebuild its chip-foundry business.

The Information Technology sector covers hardware, software and semiconductor companies driving the digital economy.