Intel Shares Crash 28.6% in Worst Day Since 1974
The Intel shares crash on Friday, 30 October, wiped more than $140 billion from the chipmaker’s market value in a single trading session, as shares fell 28.6% to close at $65.76. The fall, Intel’s worst since 1974, followed a fourth-quarter forecast that came in well below what analysts had expected, and it dragged other semiconductor stocks down with it.
Intel had reported third-quarter revenue of $16.5 billion, up 21% from the same period last year. Investors, however, looked past that result and focused on what the company expects next. Intel forecast fourth-quarter revenue of $15 billion to $16 billion, against analyst expectations of around $17.07 billion, and adjusted earnings of $0.25 a share, against expectations of about $0.43. It also expects its gross profit margin to fall from 43% in the third quarter to approximately 37% in the fourth quarter.
Why the Intel shares crash happened
The main reason was the outlook for personal computers. Intel said weaker PC demand, rising memory prices, and heavy spending on chip manufacturing would continue to affect its business. Chief executive Lip-Bu Tan said customers had already started warning the company about slowing PC sales because of higher memory prices and limited component availability, and he said rising computer prices were putting extra pressure on businesses with limited IT budgets.
The pressure comes from a clash inside the technology market. Artificial intelligence companies are buying large quantities of memory chips to build data centres, pushing memory prices higher, so PC makers face higher costs and customers delay purchases. Intel expects the PC slowdown to continue at least through the first half of 2027.
Intel’s own PC chip division reflected that strain, with revenue slipping 5% to $8.1 billion in the third quarter. The company also faces production limits after an accident at its Kiryat Gat facility in Israel in mid-October halted manufacturing for about two weeks, with reports putting the revenue effect at about $600 million over two quarters.
The market reaction went beyond Intel. AMD, Arm Holdings, Nvidia and Qualcomm fell between 4% and 11.12% on Friday.
The stronger part of Intel’s business
Despite weaker PC demand, Intel reported strong growth in its data centre business. Revenue from its Data Center and AI division increased 78% from a year earlier, reaching $7.3 billion, driven by demand for server processors used by cloud computing companies and AI infrastructure providers.
That growth, however, brings its own problem. Intel is struggling to produce enough chips to meet all of that demand. One new facility in Arizona is already operating, while another is not expected to become operational until 2028.
For now, Intel faces a difficult balance: managing weaker PC demand while investing in manufacturing capacity for future growth. Even after Friday’s drop, Intel shares were still up more than 80% in 2026, which shows the market had priced in a much stronger recovery than the fourth-quarter forecast now supports.
What the Intel shares crash means for PC buyers in Pakistan
For readers in Pakistan, the direct effect is not a share price, but a computer price. If memory costs stay high and PC makers pass those costs on, buyers face a choice between paying more, waiting longer to upgrade, or settling for a lower specification. Businesses with tight IT budgets, schools, and small firms feel that pressure first.
Frequently asked questions
How far did Intel shares fall on 30 October?
Intel shares fell 28.6% to close at $65.76 on Friday, 30 October, wiping out more than $140 billion in market value in a single session. It was the company’s worst day since 1974.
Why did Intel shares crash despite higher third-quarter revenue?
Third-quarter revenue rose 21% to $16.5 billion, but investors focused on the fourth-quarter forecast of $15 billion to $16 billion, below analyst expectations of around $17.07 billion, plus a forecast fall in gross margin from 43% to about 37%.
What is driving weaker PC demand at Intel?
Intel blames rising memory prices and limited component availability, driven by AI companies buying memory in bulk for data centres, which pushes up computer prices and leads customers to delay purchases.
Is Intel’s data centre business still growing?
Yes. Revenue from its Data Center and AI division rose 78% from a year earlier to $7.3 billion, although Intel says it is struggling to produce enough chips to meet all of that demand.
