Intel delivered one of the ugliest trading sessions in its recent history on Friday, October 30. The chipmaker forecast fourth-quarter 2026 revenue of just $15 to $16 billion, well below the roughly $17 billion analysts had expected. Investors responded brutally, sending Intel stock down 25% in premarket trading.
The company also warned it will burn cash this year, pointing to a weak PC market, manufacturing bottlenecks, and the heavy cost of expanding production. Intel blamed much of the shortfall on a memory chip shortage that has squeezed PC demand, combined with its own supply problems.
The memory crunch may not end soon. According to Bloomberg and PCWorld, SK Hynix now expects the shortage to persist until 2030, a sobering outlook for the entire PC and semiconductor supply chain.
Intel’s plunge dragged the whole chip sector down with it. Nvidia slipped about 2.5%, AMD fell roughly 7%, and Broadcom dropped around 4% as investors re-priced the near-term outlook for semiconductors.
The rout came on the same morning Amazon was also selling off on AI spending concerns, compounding one of the worst days for tech stocks this year. For Intel, the road back now runs through fixing its factories — and hoping PC demand recovers before the cash burn worsens.
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Bhudev Bhagaliya is an experienced and senior journalist who has carved a distinct niche for himself in the world of Hindi journalism through his profound understanding and precise writing style. With over two decades of experience in the field of journalism, he has held key responsibilities at Dainik Hindustan for 12 years and at Amar Ujala for one year. Currently, he serves as the Content Editor for the Jagrook Youth News newspaper and portal, where he plays a crucial role in ensuring the quality and credibility of the news content. Bhudev Bhagaliya consistently writes about issues that help raise awareness within society and among the younger generation.