Intel shares drop 7.7% as weak guidance and supply woes hit

Intel shares fell 7.7% in morning trading today, hitting a session low of $52.41, extending a multi-week selloff triggered by weak fourth-quarter revenue guidance issued on October 29. The company's Q4 2026 sales forecast of $15-16 billion fell over $1 billion short of Wall Street's ~$17 billion estimate, driven by sluggish PC demand, severe memory shortages, supply chain constraints, and a ~$300 million revenue hit from a manufacturing incident at its Israel plant. Barclays maintained a "Hold" rating with a $75 target, while Northland Securities slashed its 2027 EPS estimate from $2.68 to $1.13. CEO Lip-Bu Tan's November 2 purchase of 150,000 shares at $64.73 failed to stabilize the price, and legal scrutiny over the guidance disclosure added uncertainty. A Democratic midterm sweep unsettled the semiconductor sector on regulatory concerns, while AMD's strong earnings highlighted Intel's competitive weakness. The stock now trades near $53.77, far below its 52-week high of $142.35.