[FLASH] Intel has its worst day since 1974 after a weak Q4 outlook, pulling chip stocks down
Intel closed at $65.76 on Oct 30, down 28.58% (FX Leaders). It guided Q4 revenue to $15–16B and adjusted EPS to $0.25; CNBC cites consensus of $17.1B and $0.43. Intel blamed PC weakness from rising memory costs and an explosion at its Israel fab, which it expects to cost about $600M of revenue over two quarters. The move spread through the sector: CNBC reported Nvidia down 4%, Broadcom down more than 5%, Qualcomm down 11% and the Nasdaq down 2.9%, and 24/7 Wall St reported AMD down about 10% and Dell down about 13% premarket. What to watch: the CFO expects the PC slowdown to last at least through the first half of next year. CNBC also reports downgrades, including D.A. Davidson cutting the stock to neutral, and analysts urging caution about buying after the drop.