Intel shares crash following weak fourth quarter forecast

Intel shares suffered a major selloff on Friday after the company issued a fourth-quarter forecast that fell well short of expectations, according to reports by Decrypt, KuCoin, and Bloomberg. Decrypt reported that the stock plummeted nearly 30% to $65.76, while Yahoo Finance reported an overnight crash of 23%. Decrypt and The Tech Buzz both reported that the drop marked the company's worst single-day decline in over 50 years. [1][4][5][6][8]

The sharp decline wiped out more than $146 billion in Intel market value, according to Decrypt. The selloff occurred despite the chipmaker actually beating its third-quarter earnings expectations. Benzinga also reported that Intel suffered a record crash alongside a broader market downturn. [1][7]

Intel faces a operational imbalance due to manufacturing constraints and shifting product demand, Decrypt reported. Although artificial intelligence infrastructure construction has created high demand for Intel processors, the company is unable to manufacture enough chips to meet it. At the same time, Intel traditional personal computer business continues to struggle. [1]

The semiconductor industry previously experienced broad supply dislocations during the 2020 to 2023 global chip shortage, which formed part of the wider economic disruption and supply chain crisis following the COVID-19 pandemic. [9]