Intel shares plunge 21% after Israel plant explosion and PC market slump

Intel shares plunged 21% Thursday after the company warned a deadly explosion at its Israel plant would cost about $600 million in revenue over two quarters, while a PC market slowdown could pressure sales into next year. The weak outlook also dragged down other chipmakers' stocks. The October blast at its Kiryat Gat facility killed two people and halted production for two weeks. Intel cut its fourth-quarter revenue forecast by roughly $300 million and gross margin by about 200 basis points, with a similar impact expected in the first quarter. The company forecast Q4 revenue of $15-16 billion, below analyst estimates of $17.07 billion. Intel's PC chip division revenue fell 5% to $8.10 billion, missing expectations, as CFO David Zinsner said the PC slowdown would persist through the first half of next year. The company is assessing which wafers can be salvaged and plans to restart production by week's end.