Gotrade News - Intel (INTC) shares plunged 23% after hours on Thursday, Oct. 29, according to Reuters, after it guided fourth-quarter revenue to $15 billion to $16 billion, below estimates, citing a prolonged PC slump and an Israel factory blast. Advanced Micro Devices (AMD) and Broadcom (AVGO) also fell in extended trading.
As reported by Capital Brief, citing Bloomberg, Intel shares slumped more than 19% in after-hours trading. Per Reuters, if the stock were to lose 23% in Friday's regular session, it would shed more than $112 billion in market value. According to a separate Reuters market report, results from Amazon and Intel on Thursday showed the costs of the AI boom rippling across markets, with Amazon sliding about 7% after hours.
INTC, AMD and AVGO Market Data
| Ticker | Close | Daily change | 52-week range |
|---|
| INTC | $92.07 | -3.62% | $32.89 to $142.35 |
| AMD | $566.42 | -2.08% | $188.22 to $658.52 |
| AVGO | $345.00 | -1.94% | $289.96 to $495.00 |
Regular-session close on October 29, 2026, New York time. Prices and changes: Yahoo Finance, cross-checked against the closing price on Nasdaq.com. 52-week range: Yahoo Finance daily highs and lows since October 30, 2025.
Intel (INTC): Q4 Revenue Guide of $15 Billion to $16 Billion Misses Estimates
According to Intel's official earnings release, the company expects fourth-quarter revenue of $15.0 billion to $16.0 billion, non-GAAP earnings of $0.25 per share and a non-GAAP gross margin of 38.0%. As reported by Reuters, the revenue range sits below the analysts' average estimate of $17.07 billion, according to LSEG data, and the EPS guide compares with estimates of 43 cents.
The table below takes the third-quarter results and fourth-quarter guidance from Intel's release, the revenue and EPS estimates from Reuters (LSEG data), and the gross margin forecast from investingLive.
| Metric | Q3 2026 actual | Q4 2026 guidance | Q4 analyst estimate |
|---|
| Revenue | $16.5 billion | $15.0 billion to $16.0 billion | $17.07 billion (LSEG) |
| Non-GAAP EPS | $0.52 | $0.25 | $0.43 |
| Non-GAAP gross margin | 44.1% | 38.0% | 42.8% |
Per investingLive, the gross margin guide was "arguably the most damaging figure" in the report, because it marks a clear step down from the third quarter.
Why Did Intel Stock Fall After Beating Q3 Estimates?
Intel stock fell because a weak outlook and a cash warning outweighed a third-quarter beat. Per Reuters, revenue for the quarter ended Sept. 26 rose 21% to $16.51 billion, in line with estimates, and adjusted profit of 52 cents per share beat estimates of 40 cents.
In its earnings report, Intel said Data Center and AI revenue climbed 78% to $7.3 billion, which CFO David Zinsner called "our strongest data center revenue growth in 15 years." Client Computing and Physical AI Group revenue, which investingLive describes as Intel's largest division, fell 5% to $8.1 billion, below the roughly $8.8 billion analysts expected, according to investingLive.
The quarter also came with a cash warning. Intel does not expect to have positive cash flow this year as it expands manufacturing capacity, Reuters reported. Seaport Research Partners analyst Jay Goldberg told Reuters the market entered earnings season "in a pessimistic mood," adding: "No result is good enough, and bad results receive extra punishment." Intel's stock had more than doubled this year before the report, per Reuters.
How Long Will Intel's PC Slump Last?
Intel expects PC weakness to run at least through the first half of 2027. "We see the PC slowdown continuing at least through the first half of next year," Zinsner said in the company's release, and Reuters reported that Intel expects PC chip revenue to decline in the mid-20% range in the fourth quarter.
Memory costs sit at the center of the slowdown. Per Reuters, the surge in memory prices has pushed PC costs higher and weighed on demand, and CEO Lip-Bu Tan said Intel faces "near-term challenges, including manufacturing supply shortages, the unprecedented memory crunch" and "the resulting softness in PC demand." In the release, Tan offered the company's view that "despite near-term headwinds across the PC industry, demand for our CPUs remains robust."
The warning also reached PC makers. Shares of HP and Dell sank 8% and 6.8%, according to the Reuters market report.
Kiryat Gat Blast Cuts Intel Revenue by About $600 Million
According to Reuters, Intel expects the deadly October explosion at its Israel plant to erase roughly $600 million in revenue over two quarters and to reduce supplies of AI server chips to cloud customers. The blast killed two people and seriously injured another, according to local media reports cited by Reuters, and the Kiryat Gat facility mainly makes data center chips on Intel's 10-nanometer process.
Intel lowered its fourth-quarter revenue outlook by roughly $300 million and cut its gross margin outlook by about 200 basis points because of the disruption, Reuters reported, and expects a similar hit in the first quarter. The company planned to ramp production at the plant back up by the end of the week after a two-week shutdown, per Reuters.
"I'm disappointed that we were not able to meet strong customer demand in this quarter," Tan said, as reported by Reuters. On whether the blast's effects could last longer, Zinsner said: "We'll have to see whether there is an impact that stretches beyond that." Capital Brief reported that Intel says "the full financial impact remains uncertain."
AMD (AMD) Drops 4% After Hours as Intel Weighs on Chip Stocks
Per the Reuters market report, the semiconductor index sold off after the close once Intel blamed "near term headwinds across the PC industry," and AMD dropped 4% in post-market trade. Nvidia, Broadcom, AMD, Micron, Qualcomm and Arm Holdings' US-listed shares fell between 1% and 6% in extended trading, according to Reuters.
"Overall semiconductor weakness after hours is primarily a function of Intel guide and negative sentiment spillover," Rosenblatt Securities equity sales trader Michael James told Reuters.
Broadcom fell 2% after hours, per Reuters. The semiconductor index (SOX) had already dropped 1.4% in Thursday's regular session, which Reuters tied to Alphabet's earnings report, and the Direxion Daily Semiconductor Bull ETF, which offers three times the daily performance of the SOX, was off 9% in the volatile session.
The selloff hits a group that has run hard this year. Per Reuters, the SOX has risen more than 60% in 2026, but it has declined 13% since its recent high in October and is 21% below its all-time high from June.
This article is for education and information only and is not investment advice. Investment decisions are yours to make after your own research.
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