Intel shares suffered a historic 29.52% drop on Friday, October 30, 2026, erasing nearly $130 billion in market value after the company issued fourth-quarter forecasts that fell well short of Wall Street estimates. Santiago Millán and Fernando Belinchón reported that the technology company sank 28.58% during regular trading before extending losses after the market close, dragging the Nasdaq down by almost 3% and triggering sharp declines across the broader semiconductor sector.
The October 30 Market Plunge And Sector Impact
The single-day collapse ranks among the worst sessions in Intel’s history, approaching the record 29.9% plunge recorded on July 5, 1974. The severe contraction rippled across the technology sector, pulling down major chipmakers including Nvidia, Broadcom, Micron Technology, and AMD. SoftBank shares also dropped almost 6% on the Tokyo Stock Exchange, extending a recent downward trend driven by investor questions regarding artificial intelligence financing.
Before Friday’s session, Intel shares had accumulated a revaluation of more than 140% in 2026. Following the sell-off, that yearly revaluation was reduced to 80%.
Supply Chain Pressures And Personal Computer Demand
The steep market decline stems primarily from compounding supply chain bottlenecks and a sharp contraction in personal computer sales. Computer manufacturers faced steep price increases for memory chips produced by Samsung, SK Hynix, and Micron, driven by heavy demand from artificial intelligence infrastructure. As a major component supplier, Intel absorbed the impact of cooling personal computer demand as manufacturers faced escalating hardware costs.
Additional supply constraints within Intel’s data center division further weighed on the company’s financial figures. The broader market faced two major pressures: Microsoft stopped supporting Windows 10, forcing companies to purchase newer Windows 11 systems, alongside rising hardware prices that reduced demand to the point that it is estimated to contract by 10% in 2027, after a 12% drop by 2026.
Third-Quarter Results And Foundry Performance
The steep downward revision for the fourth quarter contrasted with third-quarter results that met analyst projections. For the three-month period, Intel reported revenue of $16.5 billion, representing a 21% increase year-over-year. Adjusted earnings per share reached $0.52, beating the $0.41 projection compiled by analysts.
Intel’s Foundry division, its chip manufacturing arm, generated $6.7 billion in the third quarter, marking a 58% increase year-over-year and surpassing Wall Street expectations of $6.1 billion. The manufacturing division secured external production orders, including an agreement with Google to produce three million custom tensor processing units, alongside ongoing discussions with Nvidia.
Capital Spending Plans And Government Backing
Despite strength in the foundry and data center segments, investors expressed concern over future capital expenditure plans. Intel announced expectations for a sharp increase in capital investments and warned that it would not generate positive cash flow in 2027. Fourth-quarter revenue is projected at approximately $16 billion, trailing the $17 billion analysts had anticipated.
The company’s operational recovery remains tied to a rescue package finalized in the summer of 2025. In August 2025, the U.S. government committed an investment of $8.9 billion to acquire a roughly 10% stake in Intel. That agreement was followed in September 2025 by a $5 billion investment from Nvidia in common shares and a $2 billion investment from SoftBank Group representing about a 2% stake. As the sole U.S. manufacturer of cutting-edge chips, Intel remains central to U.S. federal manufacturing initiatives.
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