BUSINESS – Intel’s disappointing quarterly outlook has sent shockwaves through the semiconductor industry, triggering another wave of selling among major chipmakers as investors reconsider the strength of the global technology market. The American semiconductor giant reported weaker-than-expected financial guidance, highlighting mounting challenges in the personal computer (PC) sector and manufacturing disruptions that could undermine its recovery efforts. According to Reuters in its October 29, 2026, report, Intel’s shares plunged approximately 18% in after-hours trading, dragging several other semiconductor stocks lower.
The company’s latest results revealed a mixed financial picture. Intel recorded third-quarter revenue of $16.51 billion, representing a 21% increase compared with the same period last year. Adjusted earnings reached 52 cents per share, exceeding analysts’ expectations of 40 cents. However, its PC chip division struggled, with revenue declining 5% to $8.10 billion, falling short of market estimates of $8.98 billion.
The outlook for the coming quarter proved even more concerning. Intel expects fourth-quarter revenue between $15 billion and $16 billion, below analysts’ average forecast of $17.07 billion. Its projected adjusted earnings of 25 cents per share also missed expectations of 43 cents. Chief Financial Officer David Zinsner warned that the weakness could persist, stating, “Looking ahead, we see the PC slowdown continuing at least through the first half of next year.”
Another significant setback came from an explosion at Intel’s manufacturing facility in Kiryat Gat, Israel, which forced the factory to suspend operations for approximately two weeks. The disruption is expected to reduce revenue by around $600 million across two quarters. Intel is currently examining damaged production wafers to determine which can still be recovered and used.
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The disappointing announcement quickly affected other technology companies. Advanced Micro Devices (AMD) shares declined approximately 4% in after-hours trading, while Broadcom lost around 2%, reflecting concerns that Intel’s difficulties could signal broader weakness across the semiconductor sector.
Despite the sell-off, analysts cautioned against interpreting Intel’s struggles as evidence that the entire AI semiconductor market is weakening. Michael James of Rosenblatt Securities attributed the broader decline primarily to negative sentiment surrounding Intel’s forecast. Other companies, particularly those supplying AI infrastructure, may continue benefiting from strong demand.
Nevertheless, the semiconductor sector has experienced increasing volatility after gaining more than 60% during 2026. Concerns about financing costs, massive AI infrastructure investments, and slowing consumer demand are now testing investor confidence.
Intel CEO Lip-Bu Tan continues pursuing an ambitious turnaround strategy, including expanding the company’s contract manufacturing business to compete with industry leader TSMC. Whether those investments can restore Intel’s competitive position remains a major question for investors.
