Intel Stock Crashes 27% in Worst Day in Decades as Memory Shortage Wrecks PC Outlook and Q4 Forecast Misses

Intel shares plunged more than 27% on Friday, wiping out a large slice of the chipmaker's blistering 2026 rally after a weak fourth-quarter forecast and a grim warning about the personal computer market overshadowed better-than-expected quarterly profit.

The stock traded at $66.84 shortly before 10:45 a.m. EDT, down $25.23, or 27.4%. Shares at one point fell as much as 30%, putting the company on pace for what could be its largest one-day drop ever.

The only worse session in more than five decades of trading came on July 5, 1974, when the stock fell 29.9%.

Profit beat, outlook miss

The selloff came despite a solid third quarter. Intel reported adjusted earnings of 52 cents per share, well above the 41 cents analysts expected, on revenue of $16.5 billion, which matched estimates and rose 21% from a year earlier.

The problem was what comes next. Intel forecast fourth-quarter revenue of $15 billion to $16 billion, short of the roughly $17 billion Wall Street expected. Its adjusted earnings guidance of 25 cents per share fell far below the 43-cent consensus, and it projected gross margin would slip to 38% from 43% in the third quarter.

The company also flagged a one-time hit. An accident in early October forced an extended shutdown at Intel's factory in Israel, which it expects to reduce fourth-quarter revenue by about $300 million.

Memory crunch hits PCs

At the center of the warning is a global shortage of memory chips, which has driven up PC prices and squeezed corporate technology budgets. Intel now expects the PC market to shrink 12% in 2026 and another 10% in 2027, with weakness lasting at least through the first half of next year.

Chief Executive Lip-Bu Tan said the company expects current conditions to last "until memory availability and prices begin to normalize."

Chief Financial Officer David Zinsner said the pressure grew stronger during the quarter, especially toward its end, and led customers to meaningfully change their buying patterns.

Revenue from Intel's Client Computing Group, which sells PC processors, fell 5% to $8.1 billion.

Bright spots overlooked

The gloomy outlook buried strong results elsewhere. Data Center and AI revenue jumped 78% to $7.3 billion, which the company called its fastest growth in 15 years. Intel Foundry sales rose 58% to $6.7 billion.

But investors focused on cash. Intel's management does not expect positive free cash flow in 2027 as capital spending rises. Reports said weak PC demand and cash flow pressure drove the selloff, as the downturn dashed hopes for a recovery.

Intel has been shoring up its finances. It completed a $23 billion public stock offering in August. The U.S. government took a roughly 10% stake in the company in August 2025, funded by $5.7 billion in previously awarded but unpaid grants.

Analysts cut targets

Wall Street responded quickly. Bank of America's Vivek Arya downgraded Intel to neutral from buy and cut his price target to $100 from $145. Roth Capital's Suji Desilva made the same downgrade and slashed his target to $70 from $120.

Cantor Fitzgerald's C.J. Muse lowered his target to $90 from $125.

Of 33 analysts tracked by Benzinga, 10 rate the stock a buy, 22 a hold and one a sell, with an average price target of $100.

A rally interrupted

The drop cuts into one of the market's most striking comebacks. Intel had gained nearly 150% this year through Thursday and would still be up about 86% for 2026 even after Friday's slide. The stock now trades roughly 52% below its 52-week high of $142.35.

Intel closed Thursday's regular session at $92.07 before reporting results after the bell.

Expectations had been high going into the report. Analysts had noted the stock carried a valuation of about 57 times earnings, leaving little room for disappointment.

Ripple effects across tech

Intel's warning spread beyond its own shares. Dell fell 13% and AMD dropped 10% as investors weighed PC exposure, while Nvidia slipped a smaller 3% because it sells few PC chips.

The broader market also turned lower. Shortly after the open, the S&P 500 was down 1.1% and the Nasdaq composite fell 2.2%. Amazon added to the pressure after reporting heavy artificial intelligence spending and negative free cash flow.

Intel and Amazon were on track to lose roughly $300 billion in combined market value on Friday.

What comes next

Intel's turnaround now hinges on two questions: whether memory supplies improve enough to steady PC demand in 2027, and whether its foundry business can win outside customers. Management expects to announce new foundry customers over the next two quarters.

Supporters point to data center demand that still outstrips Intel's supply and improving manufacturing yields at Intel Foundry. Skeptics warn that the PC slump could last longer than the company projects while spending keeps cash flow negative.