Intel shares post worst one-day drop since 1974 after earnings

Intel shares collapsed 29% on Friday to close around $65, their worst single-day performance since 1974, after the chipmaker's third-quarter report paired a data-center beat with a disappointing outlook for the current quarter. The stock had been up roughly 150% for the year heading into the report, according to CNBC.

Intel beat earnings-per-share estimates but revenue came in slightly below consensus. Data center and AI revenue rose nearly 80% year over year to $7.3 billion, topping expectations, and CEO Lip-Bu Tan said he expects industrywide server CPU unit growth of 30% in both 2026 and 2027. Management pointed to an explosion at an Israeli fab earlier in the month as a factor slowing data-center output.

Guidance spooks Wall Street

Intel's PC business was weak, which executives blamed partly on elevated memory-chip prices, and the company warned the PC slump would extend into next year. Fourth-quarter guidance also missed the mark: Intel projected adjusted earnings of 25 cents per share on revenue of $15 billion to $16 billion, versus consensus of 43 cents per share and $17.1 billion, according to a separate CNBC markets report. Bank of America, Roth Capital Partners and Seaport Research Partners all cut Intel to neutral from buy; New Street Research upgraded the stock to buy from neutral.

The drop also hit an unusual shareholder: the U.S. government, which holds roughly 433 million Intel shares after taking an equity stake in the company earlier this year. CNBC calculated that stake lost about $11 billion in value on Friday alone, though the position remains up roughly $20 billion overall given the government's $20.47 average purchase price.