Intel shares drop 3.4% on inflation fears, Nvidia scandal, weak guidance

Intel shares fell 3.4% to $57.34 in midday trading, erasing the prior day's rebound amid inflation concerns, an Nvidia scandal, and weak company guidance. A hotter-than-expected CPI report fueled fears of a December Fed rate hike, dragging the Nasdaq down. Nvidia's CEO affair scandal also pressured semiconductor sentiment, while Intel's Q4 PC revenue forecast of a 20% decline and weak memory market outlook weighed on the stock. Analysts maintain a "hold" rating, noting a long recovery path. Broader indexes fell, though Intel's Q3 server revenue rose 80% year-over-year, and a new Altera collaboration offered limited support.