Intel's collapse on Wall Street is deepening. Shares of the chipmaking giant are plunging about 30%, trading at around $64.70, compared with roughly $92 at Thursday's close. The company's market capitalization has fallen to approximately $343.5 billion, meaning about $145 billion has been wiped off its value in just a few hours. If the decline holds through the close, it will mark Intel's worst trading day since 1974.
Intel's plunge is dragging down major Wall Street indexes. The Nasdaq is down 2.65%, the S&P 500 has fallen 1.63% and the Dow Jones Industrial Average is down 0.72%. The Russell 2000 small-cap index has declined 1.72%, while the VIX volatility index, known as Wall Street's fear gauge, has surged about 15.8% to 19.91 points.
Intel CEO Lip-Bu Tan
(Photo: REUTERS/ Laure Andrillon)
Intel's sharp decline follows its third-quarter earnings report and fourth-quarter outlook. The company expects revenue of $15 billion to $16 billion in the fourth quarter, well below analysts' expectations of $17.1 billion, and adjusted earnings of 25 cents per share, compared with forecasts of 43 cents. This comes despite third-quarter revenue rising 21% to $16.51 billion and earnings reaching 52 cents per share, above expectations of 40 cents. Revenue from Intel's data center business jumped 78% to $7.3 billion.
The company cited a slowdown in the personal computer market, rising memory prices and an explosion at its factory in Israel that killed two people. The explosion is expected to reduce revenue by approximately $600 million over two quarters. Chief Financial Officer David Zinsner said the company would not generate positive cash flow this year. Before the earnings report, Intel shares had climbed about 150% since the beginning of the year.
Other technology giants are also trading lower. Broadcom is down 5.55%, Nvidia 3.89%, Amazon 2.14%, Microsoft 1.61%, Apple 0.79%, Tesla 0.81%, Alphabet 0.64% and Meta 0.45%. Berkshire Hathaway is up 0.87%.
Among Israeli stocks traded in New York, Elbit Systems is down 3.46%, Check Point 2.86%, Wix 1.42% and NICE 0.37%. In contrast, monday.com is up 1.59% and Teva has gained 1.06%.
In commodities, West Texas Intermediate crude oil is up 2.06% to $104.10 a barrel, while gold has fallen 3.08% to $3,907 an ounce. Bitcoin is down 0.58% to approximately $77,342. The yield on the 10-year U.S. Treasury bond has declined to 4.95%.