Intel Set for Worst Trading Day Ever, Down 25% Premarket on Weak Q4 Guide
INTC has more than doubled off its 52-week low of $32.89.
Summary
Intel is headed for its worst trading day on record, down roughly 25% before the bell, which would erase about $120 billion of market value. The trigger is Q4 revenue guidance of $15-16 billion against FactSet consensus north of $17 billion, following Q3 revenue of $16.5 billion. Management expects the PC market to contract 12% this year and 10% in 2027, with soaring memory costs pushing computer prices beyond what customers will pay. CEO Lip-Bu Tan also flagged a multiweek shutdown at an Israeli fab from an accident that is hitting server shipments, plus an organic substrate shortage whose capacity expansions won't pay off until the second half of next year. The one bright spot: data-center and AI revenue rose 78% year-over-year, and Intel pegs the server CPU market growing from $40 billion to $200 billion in five years.
At the time of this announcement, INTC was trading at $69.14 on NASDAQ in the Technology sector, with a market capitalization of approximately $486.7B. 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 8 out of 10. Source: Dow Jones Newswires.