Intel Sinks 29%, Erasing $12 Billion From U.S. Stake as Israel Shutdown Hits Guidance
Updated
Updated · CNBC · Oct 30
Intel Sinks 29%, Erasing $12 Billion From U.S. Stake as Israel Shutdown Hits Guidance
3 articles · Updated · CNBC · Oct 30
Summary
Intel’s 29% slide marked its worst day since the 1970s after the chipmaker forecast quarterly revenue of $15 billion to $16 billion and adjusted EPS of $0.25, well below Wall Street expectations.
A fab explosion in Israel and a weak PC market drove the miss: Intel said the shutdown will cut about $600 million in revenue over two quarters, while global PC shipments fell 4% in the second quarter.
The selloff knocked about $12 billion off the value of the U.S. government’s 10% stake and about $6 billion from Nvidia’s holding, even after Intel shares had risen roughly 150% this year.
The warning rippled across tech, with the Nasdaq down 2.9%, Qualcomm off 11%, Broadcom down more than 5% and Nvidia falling 4% as investors questioned heavy AI spending.
For CEO Lip-Bu Tan’s turnaround, the setback clouds Intel’s foundry push: 18A production is underway in Arizona, but the company still has no external customers and says customer announcements may come within two quarters.