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AI summary of a third-party reportBearishNewsDesk

Intel shares fall nearly 30% after weak fourth-quarter forecast

Intel stock dropped almost 30% to $65.76 on 30 October, erasing more than $146bn in market value, after the chipmaker's fourth-quarter guidance fell short of Wall Street estimates despite strong AI chip demand.

Why it matters: Intel is trying to rebuild its manufacturing business as a foundry and compete with TSMC, so its cash generation and production capacity matter to investors watching the AI infrastructure buildout.

InvestIn.News NewsDesk · 1 min read
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Picture from Decrypt for: Intel shares fall nearly 30% after weak fourth-quarter forecast
Image: Decrypt
Original reporting: Jose Antonio Lanz, Decrypt

Key points

  • Intel forecast fourth-quarter revenue of $15bn to $16bn, against analysts' $17.1bn estimate, and adjusted earnings per share of $0.25 versus $0.43 expected.
  • Third-quarter revenue rose 21% year on year to $16.5bn, with the Data Center and AI division up 78% to $7.3bn.
  • CFO Dave Zinsner said Intel probably will not have positive free cash flow next year and described 2027 as an investment year.

Intel shares fell nearly 30% to $65.76 on 30 October, the worst single-day decline in more than 50 years, after the chipmaker's fourth-quarter forecast disappointed investors. The selloff erased more than $146bn in market value, Decrypt reports.

The third quarter itself was strong. The Data Center and AI division brought in $7.3bn, up 78% year on year, with operating profit of $3bn.

The outlook was weaker. Intel guided fourth-quarter revenue to $15bn-$16bn, about $1.6bn below the $17.1bn analysts expected at the midpoint, and adjusted earnings per share to $0.25 against an estimate of $0.43. Non-GAAP gross margin is forecast at 38%, down from 44.1%.

Intel blamed softer PC demand, manufacturing constraints on server processors and an accident at a factory in Israel. CFO Dave Zinsner said the company probably would not generate positive free cash flow next year as it funds its foundry expansion. Nvidia invested $5bn in Intel in September 2025, and a preliminary Apple chip agreement helped lift the shares above $130 in May.

Read the full story on Decrypt

Live updates on NewsFeeds:AIDesk editor: Keshav Aggarwal (accountable for this page; this summary was not edited by hand)

How this was produced: an AI model wrote this summary of Decrypt’s report, which we credit and link above. Read our Editorial and AI policy. Spotted a mistake? See Corrections.

Not investment advice. Read the risk disclaimer.

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