Intel stock crashes 28% on weak earnings and AI headwinds

Oct 29, 2026

Intel stock plunged up to 29% on October 30, 2026, following a weak fourth-quarter revenue forecast of $15 billion to $16 billion and declining profit margins. CEO Lip-Bu Tan cited PC market headwinds caused by high AI-driven memory costs. The selloff erased $12 billion from the U.S. government's 10% stake acquired in 2025, while dragging down major tech peers like Amazon, Nvidia, and Alphabet amidst broader market anxieties over massive AI infrastructure spending.

Intel financial performance and stock drop

▪Intel's stock remains up over 70% for 2026 despite the 28% decline on October 30, 2026 from its summer highs
▪Intel warned that its gross profit margin would drop from 43% to 37% and that heavy manufacturing investments would eliminate positive cash flow
▪Intel stock dropped 28% to 29% on October 30, 2026, after Intel reported lower-than-expected revenue guidance
▪Intel's data center revenue grew 78% year-over-year in third-quarter 2026, though fab capacity constraints limited further growth against Taiwan Semiconductor Manufacturing Co.
▪Intel forecasted fourth-quarter 2026 revenue between $15 billion and $16 billion, below analyst expectations of $17 billion

U.S. government investment in Intel

▪The October 30, 2026 stock crash reduced the value of the U.S. government's Intel holdings by $12 billion to around $32 billion
▪The U.S. government funded its August 2025 Intel stake purchase using $5.7 billion in CHIPS Act grants and $3.2 billion from the Secure Enclave program
▪The U.S. government acquired a 10% stake in Intel in August 2025, purchasing 433.3 million common shares at $20.47 per share for $8.9 billion

Big tech capital spending on AI

▪Amazon reported third-quarter 2026 capital expenditures of $77.3 billion and total revenue of $201.9 billion, missing Wall Street predictions of $202.3 billion due to heavy AI spending
▪Meta posted $34.91 billion in third-quarter 2026 capital expenditures and narrowed its full-year capital spending target to between $135 billion and $145 billion
▪JPMorgan Global Research projected that major technology companies will spend $900 billion on artificial intelligence infrastructure in 2026

Declines in major technology stocks

▪Alphabet lost nearly $500 billion in market value on October 29, 2026, following lower-than-expected revenue figures
▪Major technology stocks including Nvidia, Tesla, Meta, Apple, and Microsoft fell between 1% and 3% on October 30, 2026