Intel shares extend slide as AMD posts record quarter

Intel ↘ 10.33% shares fell again in Wednesday morning trading. The drop extends a multi-session sell-off that started when the chipmaker issued a disappointing fourth-quarter outlook, and it came even as the broader market rallied. Analysts are cutting their estimates and a law firm has opened a shareholder investigation, so the stock has had little room to recover from its worst day in half a century. Intel stock had given back more than half of its 2026 rally in four months, Benzinga reported.benzinga.com+1

A guidance shock

The slide began after Intel forecast fourth-quarter revenue of $15 billion to $16 billion and adjusted earnings of 25 cents per share. Analysts had expected $17 billion and 43 cents, according to LSEG estimates cited by CNBC. On October 30 the stock plunged 28.6%, its worst drop since 1974. It fell sharply again on November 2.cnbc.com+2

The weak outlook overshadowed a strong third quarter. Revenue rose about 21% to $16.5 billion, and data center and AI sales jumped 78% to $7.3 billion, the segment's fastest growth in 15 years, according to 24/7 Wall St.. The problem was PCs. Management expects client revenue to fall more than 20% from the prior quarter and the PC market to shrink about 12% in units in 2026. It blamed memory shortages and tight IT budgets. A factory incident in Israel is also expected to cut about $300 million from fourth-quarter revenue.finance.yahoo.com+1

Downgrades and a probe

Bank of America ↘ 3.62% downgraded Intel to neutral from buy and cut its price target to $100 from $145. Analyst Vivek Arya wrote that Intel's "data center strength is offset by a surprisingly sharp drop in PC shipments". Bernstein's Stacy Rasgon said this was "the quarter when they hit the wall" on the PC outlook.cnbc.com

On Wednesday, Northland Securities cut its estimates. It lowered its fourth-quarter earnings forecast to 16 cents per share from 64 cents and its 2027 estimate to $1.13 from $2.68. Separately, Levi & Korsinsky said it is investigating whether Intel adequately disclosed risks tied to weak PC demand and manufacturing bottlenecks.marketbeat.com+2

AMD widens the gap

Rival AMD Advanced Micro Devices, Inc. ↘ 17.26% added to the pressure. It reported record third-quarter results on Tuesday, with revenue up 45% and data center sales nearly doubling. Its fourth-quarter forecast would make it larger than Intel by revenue for the first time if met. Intel fell even as the S&P 500 ↘ 4.41% and Nasdaq Composite rose, which points to company-specific selling.investing.com+1

UBS ↘ 3.75% analyst Timothy Arcuri sees little relief ahead. "The path to recovery in PC looks challenging given our view that there is no relief in sight for memory pricing/supply," he wrote.cnbc.com