Intel Suffers Worst Daily Drop in 50 Years After Weak Outlook

Intel shares recorded their worst daily performance in five decades after the release of a disappointing financial outlook. The stock fell nearly 30% on Friday. The move wiped out approximately 146 billion dollars in market value from the company.

Third-quarter results topped analyst estimates with revenue of 16.5 billion dollars. The Data Center and Artificial Intelligence division saw a 78% increase in annual revenue. The operating profit for this sector reached 3 billion dollars during the period.

Despite the positive numbers, the company frustrated the market with its forecast for the fourth quarter. Expected revenue is below Wall Street estimates. Gross margins are expected to deteriorate in the coming months.

The company is struggling with weak demand in the personal computer sector. Issues at factories and limitations in server processor production are also weighing on the scenario. The company is prioritizing long-term infrastructure investments.

Chief Financial Officer Dave Zinsner described 2027 as a year of high investment. The company does not project positive free cash flow in the short term. The focus remains on building production capacity despite high costs.