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Intel stock plunges nearly 30%, its worst day in 52 years

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Intel stock plunges nearly 30%, its worst day in 52 years

What just happened? Intel was one of the stock market's biggest surprises this year. Its shares nearly quadrupled between January and a record high in late June – a run fueled by demand for the CPUs behind agentic AI. But on Friday, the chipmaker gave back a huge chunk of those gains in a single session. The stock closed down almost 29% at $65.76, its worst day since 1974.

Oddly enough, the quarter itself went well. Intel beat Wall Street's earnings estimates. Its data center revenue jumped nearly 80% from a year earlier to $7.3 billion, too. But its forecast for the last three months of the year landed well short: analysts had penciled in about $17 billion in revenue. Intel only expects $15 billion to $16 billion.

The weak spot is PCs. AI data centers are buying up so much of the world's memory that laptops and desktops have gotten a lot pricier this year. So fewer of them are selling. Intel now expects PC shipments to drop about 12% in 2026 and another 10% in 2027. It doesn't see things improving until memory supply and prices get back to normal.

The forecast also has to absorb a shutdown at the company's fab in Kiryat Gat, Israel. That's where an explosion killed two workers earlier this month.

Going by Yahoo Finance's count of closing prices back to 1973, only a nearly 30% slide in July 1974 was worse than Friday. A. Davidson, Seaport and Roth all downgraded the stock to neutral the same day.


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