Intel stock plunges 28.58%, with guidance below expectations

AT A GLANCE

Intel stock fell 28.58%in a single day, with earnings guidance below expectations and the wafer fab incident potentially continuing to affect shipments.

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Intel plunges 28.58%, with the value of the U.S. government's stake evaporating by approximately 12000000000 USD BlockBeats reports that October 31, according to BIT stock platform data, Intel closed down 28.58%on Friday, at 65.76 USD, marking its worst single-day performance since the 1970 s. The U.S. government's approximately 10%stake in Intel declined in value by approximately 12000000000 USD that day, but the investment remains profitable. The value of Nvidia's Intel stake also fell by approximately 6000000000 USD. Ahead of the earnings release, Intel's stock had risen approximately 150%year to date.

Regarding its guidance, Intel expects fourth-quarter revenue of 15000000000 to 16000000000 USD, below the market expectation of LSEG compiled by 17100000000 USD; adjusted earnings per share are expected to be 0.25 USD, below the expected 0.43 USD. Chief Financial Officer David Zinsner said that the PC market slowdown is expected to last at least through the first half of 2027; rising memory and other component costs are putting pressure on the industry.

In addition, an explosion occurred this month at Intel's wafer fab in Israel, killing two people and seriously injuring one, while forcing the plant to remain shut down for an extended period and affecting shipments of 10-nanometer chips. Zinsner expects the incident to result in total revenue losses of approximately 600000000 USD over two quarters.

The foundry business remains central to Lip-Bu Tan's efforts to transform the company. Intel's 18A chips have entered mass production at the company's new Arizona plant, but the new chips do not yet have external customers. Lip-Bu Tan said two customers are expected to be announced over the next two quarters, and research and development of 14A chips is also making significant progress.

D.A. Davidson downgraded Intel from Buy to Neutral, saying that although the PC market is facing industry-wide pressure, the weakness of the business has made the current valuation difficult to support. Raymond James Chief Market Strategist Matt Orton, meanwhile, said this is not yet the AI industry's “reckoning moment”; fundamentals remain strong, but investors need to reassess the still-crowded positioning in the sector.

Original link https://m.theblockbeats.info/flash/374802

Key points

Intel closed down 28.58%, at 65.76 USD, marking 1970 s' worst single-day performance since the
The U.S. government's approximately 10%stake in Intel declined in value by approximately 12000000000 USD, but the investment remains profitable.
The value of Nvidia's Intel stake fell by approximately 6000000000 USD。
Intel expects fourth-quarter revenue of 15000000000 to 16000000000 USD, below the market expectation of 17100000000 USD; adjusted earnings per share are expected to be 0.25 USD, below the expected 0.43 USD。
Intel Chief Financial Officer David Zinsner said that the PC market slowdown is expected to last at least through the first half of 2027.
An explosion occurred this month at Intel's wafer fab in Israel, killing two people and seriously injuring one, while forcing the plant to remain shut down for an extended period and affecting shipments of 10-nanometer chips.
Intel expects the incident to result in total revenue losses of approximately 600000000 USD over two quarters.
Intel 18A chips have entered mass production at the company's new Arizona plant, but the new chips do not yet have external customers.
Lip-Bu Tan said two customers are expected to be announced over the next two quarters, and 14A chip research and development is also making significant progress.
D.A. Davidson downgraded Intel from Buy to Neutral.
Raymond James Chief Market Strategist Matt Orton said this is not yet the AI industry's “reckoning moment,” but investors need to reassess the still-crowded positioning in the sector.

AI-assisted interpretation

The following is analysis, separate from reported facts. Verify important claims independently.

This report covers the stock price, the company's earnings outlook, and a production accident. Intel's revenue and earnings-per-share guidance for the next quarter came in below market expectations, while the accident at its Israeli wafer fab affected production and shipments, resulting in a sharp market decline. Whether the company can restore the plant, improve its performance, and secure 18A customers will be a key focus.

Why it matters to readers

A decline in the stock price reduces the book value of related holdings; weaker guidance and production losses are also prompting investors to reassess Intel's transformation progress.

When reviewing this type of news, it is important to distinguish between stock price changes that have already occurred, the company’s forward guidance, and customer and production-resumption plans that have yet to be realized.

Risks and unknowns

The current materials primarily come from a single financial news source, and some accident impacts and performance losses have not yet been independently cross-verified.
It remains uncertain whether Intel’s revenue and adjusted earnings per share in subsequent quarters will meet or exceed guidance.
The progress of Israeli wafer fabs resuming production and 10 the recovery of nanometer chip shipments remain uncertain.
It remains uncertain whether two 18A customers and 14A R&D developments will be announced over the next quarters.

Intel stock plunges 28.58%, with guidance below expectations

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