Intel stock plunges 29% in worst day since 1974 on weak forecast

Intel stock plunged nearly 29% on Friday, its worst day since 1974, after the chipmaker's fourth-quarter forecast fell far short of Wall Street expectations, erasing roughly $140 billion in market value. The company beat estimates with adjusted earnings per share of $0.52 and data center revenue jumping to $7.3 billion, but its outlook of $15 billion to $16 billion in revenue and $0.25 EPS missed analyst forecasts of about $17 billion and $0.43. The weak guidance stems from a PC market slump driven by AI data centers consuming memory chips, with shipments expected to fall 12% this year and 10% in 2027, plus a $300 million hit from an Israel factory accident. Despite the drop, Intel stock remains up nearly 80% this year, though it has lost over half its value since its June peak. The selloff also shaved more than $10 billion off the US government's 9.9% stake, though that holding is still worth about three times its purchase price. Bernstein analyst Stacy Rasgon called the outlook "terrible" and cut his price target to $75 from $110.