Intel shares suffer worst drop in 50 years, erasing $147 billion in market value

Intel shares plunged nearly 30% on Friday, marking the company's worst single-day drop in 50 years and erasing approximately $147 billion in market value after disappointing fourth-quarter forecasts. The selloff was triggered by weak guidance for Q4 2026, with Intel projecting revenues of $15.5 billion versus analyst estimates of $17.07 billion, alongside production constraints on server processors and a weak PC market outlook. The decline dragged the entire semiconductor sector down, with the PHLX Semiconductor Index falling 9.14%. Despite strong Q3 results showing 21% revenue growth to $16.5 billion, driven by a 78% surge in Data Center and AI division sales, Intel faces manufacturing and packaging capacity limits that prevent it from meeting server chip demand. The company also expects PC market contraction of 10% in 2027.