Intel Shares Plunge 28.58% as Weak Outlook Rattles Markets

Intel shares experienced a steep sell-off on Friday, plunging 28.58% to close at $65.76 in one of the semiconductor manufacturer's largest single-day declines in decades, according to YahooStocks0. The sharp drop occurred despite the company beating quarterly earnings expectations, as investors shifted focus toward a less encouraging financial outlook and ongoing concerns regarding its turnaround strategy.

Trading activity surged alongside the decline. Approximately 447.8 million shares changed hands, marking a volume roughly 314% above the stock's three-month average of 108.1 million shares. The broader market also felt the impact, with the S&P 500 closing down 2.07% at 7,561 and the Nasdaq Composite finishing down 2.86% at 25,437. Other semiconductor names faced downward pressure, as Advanced Micro Devices fell 10.88% to $504.80 and Nvidia declined 4.22% to $204.64.

Guidance and Division Performance

While Intel reported strong third-quarter revenue growth, the company issued disappointing guidance for the fourth quarter. Management cited weakening personal computer demand, manufacturing constraints, and continued spending on its corporate turnaround as primary pressures. These headwinds raised investor questions regarding how rapidly capital investments can translate into sustainable earnings and cash flow.

Conversely, demand for data center infrastructure remained robust. Revenue within Intel's Data Center and AI division surged 78% year over year to reach $7.3 billion, bolstered by higher server shipments and stronger pricing dynamics.

Key facts

• Intel shares closed down 28.58% at $65.76 in heavy trading volume.
• Trading volume reached 447.8 million shares, 314% above the three-month average.
• Data Center and AI division revenue rose 78% year over year to $7.3 billion.
• The S&P 500 and Nasdaq Composite fell 2.07% and 2.86%, respectively.