Why Intel Stock Crashed on Friday

Intel stock plunged 28.58% on Friday following weak fourth-quarter guidance that disappointed Wall Street. While the company's data center and AI sales surged 78% to $7.3 billion, PC processor revenue declined 5% due to soaring memory chip prices straining corporate IT budgets. Management's Q4 revenue forecast of $15-16 billion and EPS of $0.25 fell significantly short of analyst expectations ($17.1 billion revenue, $0.43 EPS). An accident at Intel's Israeli factory and expectations that memory chip shortages will persist through the end of the decade further pressured the stock.