Intel (NASDAQ:INTC), one of the world’s largest semiconductor manufacturers, saw its shares plunge 28.58% Friday, closing at $65.76 in one of the company’s steepest single-day declines in decades. The sell-off came despite Intel beating quarterly earnings expectations, as investors focused on a less encouraging outlook and growing questions about the company’s turnaround.
Trading activity surged alongside the decline, with 447.8 million shares changing hands, approximately 314% above the stock’s three-month average of 108.1 million shares.
How the markets moved today
The S&P 500 (SNPINDEX:^GSPC) closed at 7,561, down 2.07%, while the Nasdaq Composite (NASDAQINDEX:^IXIC) finished at 25,437, down 2.86%. Among semiconductor designers and foundry services for PCs, data center, and edge computing, Advanced Micro Devices (NASDAQ:AMD) closed at $504.80, down 10.88%, and Nvidia (NASDAQ:NVDA) closed at $204.64, down 4.22%, as Intel’s warning pressured the group.
What this means for investors
Intel’s sharp sell-off highlights growing concerns across the semiconductor industry, where investors are increasingly questioning whether strong demand for artificial intelligence can justify elevated valuations and substantial capital spending.
Despite reporting strong third-quarter revenue growth, the company issued disappointing fourth-quarter guidance, citing weakening PC demand, manufacturing constraints, and continued spending on its turnaround. These pressures raise questions about how quickly Intel can translate its investments into sustainable earnings and cash flow.
However, Intel’s latest results suggest that demand for data center infrastructure remains robust. Revenue in its Data Center and AI division surged 78% year over year to $7.3 billion, supported by higher server shipments and stronger pricing. The company’s immediate challenges appear more concentrated in weakening PC demand, manufacturing constraints, and substantial capital spending rather than a deterioration in its data center business.
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