Intel stock plunges 29% as analysts split on buying the dip

Intel stock plunged 29% to about $65 per share on Friday, its worst one-day drop since 1974, after a third-quarter earnings report raised doubts about the pace of its turnaround. The decline erased roughly $11 billion in value from the U.S. government's stake. Intel beat earnings estimates but missed on revenue, with weakness in PC chips and supply problems in server chips disappointing investors. Fourth-quarter guidance also came in below consensus, prompting downgrades from Bank of America, Roth Capital Partners, and Seaport Research Partners, while JPMorgan and Goldman Sachs cut price targets. Analysts are split on whether to buy the dip, with KeyBanc's John Vinh calling the sell-off "overdone" and a buying opportunity, while Seaport's Jay Goldberg recommends staying on the sidelines until capacity issues are resolved. Intel's data center and AI revenue rose nearly 80% year-over-year to $7.3 billion, but growth is capped by supply constraints, including an explosion at a fab in Israel.