Intel Stock Falls 29% in Worst Day Since 1974

Intel Corporation shares closed down nearly 29% on Friday, the stock's worst day since July 1974, according to Yahoo Finance calculations from closing prices going back to May 1973. The sell-off erased nearly $140 billion in market value. The shares had already fallen about 20% in extended trading on Thursday after Intel's third-quarter report.

The quarter itself beat estimates, with adjusted earnings of $0.52 per share and data center revenue of $7.3 billion, up almost 80% in a year. The outlook is what hit the stock. Intel expects fourth-quarter revenue of $15 billion to $16 billion, below the roughly $17 billion analysts expected, and earnings of $0.25 per share against forecasts of $0.43.

Yahoo Finance points to the PC market. AI data centers are soaking up memory chips and pushing up prices for laptops and desktops, and Intel now expects PC shipments to fall about 12% this year and another 10% in 2027. An accident at its Israel factory will cost about $300 million in fourth-quarter revenue.

Bernstein analyst Stacy Rasgon called the outlook "(in a word) terrible" and cut his price target to $75 from $110. Dell and HP shares also slid. Intel's drop shaved more than $10 billion off the value of the US government's 9.9% stake, which is still worth about three times what Washington paid. Even after Friday, Intel stock is up nearly 80% this year, but it has lost more than half its value since its June 22 record.