developing· Economy· Updated
Intel Stock Plummets 20% Despite Strong Earnings on Disappointing Forecast
Intel's stock plummeted by approximately 20% in after-hours trading on Thursday, October 29, 2026, following the release of a disappointing fourth-quarter revenue forecast. Although the chipmaker's third-quarter earnings and revenues exceeded analyst expectations, the weak outlook for the upcoming quarter shook investor confidence.
4 newsrooms · 1 language · since
What happened
- 01Intel's stock fell nearly 20% in after-hours trading on Thursday following a weak fourth-quarter revenue forecast.
- 02The company projects fourth-quarter revenue of $15 billion to $16 billion, missing analyst estimates of $17 billion.
- 03Intel's third-quarter revenue reached $16.5 billion, with adjusted earnings per share of 52 cents, beating market expectations.
- 04A slowdown in personal computer chip sales and rising memory chip costs contributed to the disappointing outlook.
- 05A fatal explosion at an Intel factory in Israel will limit production and reduce fourth-quarter revenue by $300 million.
- 06Intel's gross profit margin is expected to drop to 37% due to rising costs and global shortages.
- 07The company recently announced the acquisition of Israeli firms Talkline for $2.2 billion and Classiq for up to $2.3 billion.
For the fourth quarter, Intel projects revenues between $15 billion and $16 billion, falling short of the market consensus estimate of $17 billion. The company attributed the lowered outlook to a slowdown in personal computer chip sales, rising costs, and memory chip shortages. Additionally, according to Bizportal and Ice, production limitations stemming from a fatal explosion at an Intel factory in Israel are expected to cost the company $300 million in fourth-quarter revenue.
Despite the forecast, Intel's third-quarter results were strong, with revenues reaching $16.5 billion and adjusted earnings per share at 52 cents, beating analyst projections. The company's data center and foundry divisions showed robust growth driven by artificial intelligence demand. Intel, which is the largest employer in Israel's high-tech industry, also recently announced acquisitions of Israeli companies, including Talkline for $2.2 billion according to Globes, and the quantum computing firm Classiq according to Ice.
Summarized by baba from the reports of 4 newsrooms. Updated
Latest report: Ice. Read Ice’s originalThe coverage
4 newsrooms on this story
Who covered it
- LeftNone
- CentreNone
- RightNone
- HarediNone
- ArabNone
- Other4