Intel's Weak Q4 Guide Sparks Chip Sector Rout; $120B Wiped Out
INTC has more than doubled off its 52-week low of $32.89.
Summary
Intel's soft fourth-quarter guidance and forecast of a prolonged PC-sales slowdown, tied to high memory-chip prices, have spread into a broad semiconductor selloff. Intel itself lost more than a quarter of its value Friday, erasing about $120 billion in market capitalization. The damage is sector-wide: AMD is down nearly 10%, Micron 5.5%, Applied Materials and Lam Research each about 5%, and Broadcom roughly 4%. Amazon's Q3 revenue and net income miss added to AI-trade anxiety, with free cash flow swinging to a $42.4 billion outflow. This follows Thursday's after-hours collapse on the guidance, and the read-through is that chipmakers' spending and memory/logic budgets are now in question across the supply chain.
At the time of this announcement, INTC was trading at $65.88 on NASDAQ in the Technology sector, with a market capitalization of approximately $348.2B. The 52-week trading range was $32.89 to $142.35. This news item was assessed with negative market sentiment and an importance score of 7 out of 10. Source: Dow Jones Newswires.