Intel’s data center business has just grown by nearly 80% in one year. Its fourth-quarter outlook sends the stock toward one of its worst days in half a century, wiping out more than $100 billion in market value Friday.
Intel (INTC) stock fell 30% in early trading Friday after the chipmaker’s forecast for the final three months of the year came in well short of Wall Street expectations.
According to Yahoo Finance calculations using Norgate Data closing prices dating back to May 1973, only two days in Intel’s history have been worse. The stock fell almost 30% on July 5, 1974 and about 26% on August 2, 2024.
A close below around $68 would surpass the 2024 decline and make Friday the worst day since 1974. Below around $64.50 would be the worst on record.
The liquidation caps a crazy year. Intel stock has nearly quadrupled since the start of 2026 to its June 22 record high. Even after Friday’s drop, it’s still up more than 80% this year, but it has given back about half its value since that peak.
It also fell below the $80 zone that held at its July low, and is on track to reach its lowest closing level since April 23. The next day, Intel had its best day since at least 1973, with a gain of about 24%.
The quarter itself was strong. Intel beat estimates with adjusted earnings per share of $0.52 and data center revenue jumped to $7.3 billion.
It was the outlook that caused the stock to fall. Intel expects fourth-quarter revenue of $15 billion to $16 billion, lower than the $17 billion analysts expected, and earnings per share of $0.25 versus a forecast of $0.43.
The PC market is the problem. AI data centers are sucking up memory chips from around the world, driving up prices for laptops and desktops. Intel now expects PC shipments to decline by about 12% this year and another 10% in 2027. Additionally, an accident at its Israeli factory will cost about $300 million in fourth-quarter revenue.
Bernstein analyst Stacy Rasgon called the outlook “(in a word) terrible” and cut her price target from $110 to $75.
PC makers Dell (DELL) and HP (HPQ) also fell, adding to the rout of tech stocks that hit Alphabet (GOOGL, GOOG) and Amazon (AMZN) after their reports this week.
Intel said the PC crisis won’t end until memory supply and prices return to normal.
“Rebuilding Intel is going to be a multi-year journey, and I remain steadfastly committed to getting it done,” CEO Lip-Bu Tan said during the earnings conference call Thursday.
In-house AI tools helped analyze interview transcripts, research, and write this article. Humans reviewed, edited and fact-checked the material before publication.
Follow Jared Blikre on X @SPYJared or email him at jaredblikre@yahooinc.com.
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