Intel Stock Plunges After Hours on Weak Outlook, PC Slowdown and Israel Fab Blast

Intel shares plunged about 21% in extended trading on Thursday, Oct. 29, after the chipmaker paired a better-than-expected third quarter with a fourth-quarter forecast well below Wall Street’s expectations. The company blamed continued softness in the PC market and a deadly explosion at its factory in Israel.

Reuters reported that if the after-hours loss holds through Friday’s session, Intel would shed more than $80 billion in market value.

This article is for information only and is not financial advice.

How did Intel do in its Q3 earnings?

The quarter itself beat estimates on profit. Here’s how Intel’s third quarter compared with analysts’ estimates compiled by LSEG, per CNBC and Reuters:

Underneath the headline, the picture was mixed:

• Client computing and physical AI: revenue fell 5% to $8.1 billion, missing estimates. Reuters put the estimate at $8.98 billion.
• Data center and AI: revenue jumped 78% to $7.3 billion, CNBC reported.

Why is Intel stock down after hours?

It was the guidance. For the fourth quarter, Intel expects:

• Revenue between $15 billion and $16 billion, versus about $17.1 billion expected
• Adjusted EPS of 25 cents, versus 43 cents expected

“We see the PC slowdown continuing at least through the first half of next year,” finance chief David Zinsner said in the earnings release. Reuters reported that Intel expects PC revenue to decline in the mid-20% range in the fourth quarter.

CEO Lip-Bu Tan was blunt on the call: “I’m disappointed that we were not able to meet strong customer demand in this quarter. We face near-term challenges, including manufacturing supply shortages, the unprecedented memory crunch, and the resulting softness in PC demand.”

How does the Israel factory explosion affect Intel?

An explosion earlier this month at Intel’s fab in Kiryat Gat, Israel, killed two workers and seriously injured a third, according to CNBC and local media reports cited by Reuters. Tan called it an “unfortunate and tragic accident” that caused an “extended shutdown.”

Zinsner said the incident will cost about $600 million in revenue over two quarters. In an interview with Reuters, he said the fourth-quarter revenue outlook was cut by roughly $300 million and the gross margin outlook by about 200 basis points, with a similar revenue hit expected in the first quarter. He said Intel planned to start ramping production back up by the end of this week after a two-week shutdown, but the company is still assessing which wafers are usable, so the impact could stretch further. The plant largely makes data center chips on Intel’s 10-nanometer process.

How did other chip stocks react to Intel earnings?

The weak outlook rippled across the sector. Reuters reported that Nvidia, Broadcom, AMD, Micron, Qualcomm and Arm Holdings’ U.S.-listed shares fell between 1% and 6% in extended trading.

What is the context for INTC stock this year?

Intel had been one of 2026’s big winners before this report. CNBC said the stock was up about 150% this year before earnings, though down roughly 23% in October amid concern over the size of the AI buildout. Reuters said the shares had more than doubled this year.

Other background from the reports:

• Intel raised $23 billion in an upsized share offering in August.
• The U.S. government took a 10% stake in Intel last year, and Nvidia and SoftBank also invested billions.
• Intel is in high-volume production of its 18A chips in Arizona but has no major external foundry customers yet. Tan said, “We’re going to have a couple of customers ready to announce the next two quarters.”
• Zinsner said Intel does not expect positive cash flow this year as it invests in capacity.

What do analysts say?

“Client computing is still a big factor in Intel’s earnings so while it is likely short-term, it will still impact earnings for the near term and I think that’s the biggest issue,” Anshel Sag of Moor Insights & Strategy told Reuters. Hendi Susanto of Gabelli Funds said the question is “whether Intel can build capacity fast enough to capture” demand.

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