Overview
- Intel’s shares dropped about 28–29% on Friday after the company forecast fourth‑quarter revenue of $15 billion to $16 billion and adjusted EPS of $0.25, well below Wall Street estimates.
- The company reported a strong third quarter with data‑center and AI revenue up about 78% to roughly $7.3 billion but said supply bottlenecks limited how much it could ship.
- Intel told investors an accident and extended shutdown at its Kiryat Gat, Israel, fab will cut roughly $300–$600 million of revenue over the next two quarters and slow capacity restoration.
- CFO David Zinsner warned heavy capital spending to expand fabs will likely prevent positive free cash flow next year, shifting investor focus from growth to near‑term cash generation.
- The decline erased tens of billions in market value, knocked about $12 billion off the U.S. government’s roughly 10% stake, triggered broad chip and tech losses, and put AMD’s upcoming earnings on Nov. 3 under fresh scrutiny for signs of wider PC demand weakness.