Intel Plunges 25% as Weak Outlook and PC Slump Overshadow Earnings Beat; Dell Tumbles 13%, AMD Sinks 10%, NVIDIA Falls 3%

Intel Plunges 25% as Weak Outlook and PC Slump Overshadow Earnings Beat; Dell Tumbles 13%, AMD Sinks 10%, NVIDIA Falls 3% Intel's earnings beat meant nothing once Wall Street saw what the company expects next, and the fallout is dragging down chipmakers and PC giants alike as a memory crunch reshapes the entire sector's near-term outlook. A quarterly earnings beat ran into a much weaker outlook. The selloff is erasing a chunk of this year’s rally at Intel (NASDAQ:INTC | INTC Price Prediction). Shares are at $68.85, down 25%, in premarket trading. The iShares Semiconductor ETF (NASDAQ:SOXX), a fund concentrated in chip stocks, is at $479.97, down 7%. That’s a much steeper slide than the broader Invesco QQQ Trust (NASDAQ:QQQ), which is at $697.49, down 2%. The company reported after the market closed on October 29, and the stock had finished the regular session at $92.07. Wall Street analysts expected adjusted earnings per share (EPS) of $0.41 for Q3 2026, and Intel delivered $0.52. Quarterly revenue at Intel reached $16.5 billion, in line with estimates and up 21% year over year. Intel’s Q4 Guidance Misses on Every Key Line Intel disclosed on October 29 that it expects Q4 2026 revenue of $15 billion to $16 billion, below the $17 billion Wall Street analysts expected. For adjusted EPS, Intel’s guidance of $0.25 sits well under the $0.43 Wall Street analysts projected. On margins, Intel expects a Q4 gross margin of 38%, down from the 43% it reported in Q3. A memory-chip shortage is at the center of the problem, pushing up PC prices and squeezing IT budgets. Under that pressure, Intel now projects the PC market will shrink 12% in 2026 and 10% in 2027, with the slowdown lasting at least through the first half of 2027. CEO Lip-Bu Tan said, “We expect the current environment to persist until memory availability and prices begin to normalize.” CFO David Zinsner noted the pressure. “intensified during Q3, particularly late in the quarter, and resulted in a meaningful adjustment in customer purchasing patterns.” An accident in early October also forced an extended shutdown at Intel’s Israel factory, which the company expects to cut roughly $300 million from Q4 revenue. Lost in the selloff, Intel’s Data Center and AI revenue grew 78% to $7.3 billion, which the company called its strongest growth in 15 years. Sales at Intel Foundry rose 58% to $6.7 billion, while Client Computing Group revenue fell 5% to $8.1 billion. Shoring up its balance sheet, Intel completed a $23 billion public equity offering in August. PC Makers Sink Harder Than AI Chip Leaders on Intel’s Warning Pressure on tech was already building, with the NASDAQ Composite closing more than 1% lower on October 29 amid growing doubts about the AI trade. Dell Technologies (NYSE:DELL) stock is at $416, down 13%. Intel’s PC warning lands on Dell’s Client Solutions Group, even though the company’s AI server business remains its main growth engine, and PC and printer maker HP faces similar pressure given its reliance on PCs and printers. Advanced Micro Devices (NASDAQ:AMD) stock is at $511.84, down 10% after Intel’s warning. As Intel’s main x86 processor rival, AMD shares the PC exposure, and strong Xeon demand raises competitive questions for its EPYC server chips. NVIDIA (NASDAQ:NVDA) stock is at $208.10, down 3%, the smallest decline of the group. With little PC exposure, NVIDIA’s AI GPU franchise takes less of a direct hit from Intel’s warning. Why Intel’s Factory-Heavy Model Feels a Downturn More Intel designs and makes its own processors, and it’s building Intel Foundry into a contract chipmaker for outside customers, while AMD and NVIDIA are fabless, designing chips and leaving production to outside foundries. Dell and HP sit further downstream, buying processors and assembling PCs and servers. That structure leaves Intel carrying heavy factory costs. A PC slump and plant disruptions can pressure its margins more than they pressure asset-light rivals. What Comes Next for Intel After the Guidance Reset Even after the drop, Intel stock is up 87% year to date, so the selloff cuts a large gain for longer-term shareholders. Intel now faces the question of whether memory supply improves enough to steady PC demand in 2027. Bulls point to data center demand that still exceeds Intel’s supply, along with rising yields at Intel Foundry. Bears note that Intel’s management doesn’t expect positive free cash flow in 2027 as capital spending climbs, and the PC slump could run longer than projected. Another key signal for Intel is outside Foundry demand, so watch for the customer announcements management expects over the next two quarters. A cautious approach could make sense until Intel’s PC recovery takes clearer shape. Contact [email protected] for any questions or corrections.