❯ Intel falls 28.58% as server demand fails to offset a weak fourth-quarter outlook

The post-earnings selloffIntel closed down 28.58% on October 30, U.S. time. CNBC describes its worst one-day performance since the 1970s and an approximately $12 billion reduction in the value of the U.S. government’s stake. The selloff extended from the previous evening’s after-hours trading into Friday’s regular session.

Growth now, pressure aheadIntel’s official earnings release reports third-quarter revenue of $16.5 billion, up 21% year over year. It forecasts fourth-quarter revenue of $15 billion to $16 billion and adjusted earnings of $0.25 per share. Data-center revenue recorded its strongest growth in 15 years, but the company expects the PC slowdown to last at least through the first half of 2027.

Supply and business mix shape the outcomeIntel needs to increase Xeon supply to meet server-CPU demand associated with AI infrastructure. Its substantial PC business remains exposed to a weak market, while manufacturing expansion requires capital. Growth in server orders therefore coincides with pressure elsewhere, and fourth-quarter revenue guidance remains below the third-quarter result.

▮ SIGNALAI infrastructure can lift server-CPU demand, while supply, product mix and manufacturing costs still determine a diversified chipmaker’s near-term results.