Intel shares crash 30.6%, company loses about $150 billion
Intel shares crashed 30.6% during trading on October 30, wiping out about $150 billion in market value. The collapse followed a weak Q4 forecast, with Intel expecting revenue of $15–16 billion versus analyst expectations of $17.1 billion. The company attributed the downgrade to a slowdown in the PC market, rising memory prices, and the aftermath of an explosion at its plant in Israel.
Intel shares crashed 30.6% during trading on Friday, October 30, wiping out about $150 billion in market value. The stock traded around $63.9, down from about $92 at the previous close, reducing market capitalization to $339.1 billion. If the decline holds through the close, it would be the worst day for the stock since 1974. The collapse followed the release of Q3 results and a weak Q4 forecast. Intel expects Q4 revenue of $15–16 billion, well below the analyst consensus of $17.1 billion, and adjusted earnings per share of $0.25 versus $0.43 expected. Q3 results beat estimates: revenue rose 21% to $16.51 billion, EPS was $0.52, and the data center division revenue surged 78% to $7.3 billion. The company blamed the weak outlook on a PC market slowdown, rising memory prices, and the impact of an explosion at its Israel plant that killed two people. CFO David Zinsner said the company will not generate positive cash flow this year. Other tech giants also fell: Broadcom lost 7.02%, Nvidia 5.49%, Amazon 2.40%, Tesla 2.05%. Among Israeli companies, Elbit Systems fell 4.35%, Check Point 2.67%, Wix 2.68%, NICE 0.62%. WTI crude rose 2.67% to $104.72, gold fell 3.52% to $3,889.3, bitcoin lost 1.19% to around $76,866.