Intel could lose $140 billion in market capitalization. Its stock is heading for its worst day ever.

Intel’s stock plummeted 27% to $67.2 during trading on October 30, following the release of its quarterly earnings report the previous day. If this trend continues through the end of the day, this plunge will mark the worst single-day drop in the company’s stock history, according to Bloomberg. MarketWatch estimates that the company’s market capitalization could drop by about $140 billion as a result.

Against this backdrop, shares of Intel’s partners and competitors also fell: Advanced Micro Devices dropped 9.4%, Nvidia fell 3.4%, and shares of computer manufacturer Dell Technologies lost 8.3%. The Philadelphia Semiconductor Index fell 5.7%. Taken together, the companies’ latest financial results could completely wipe out the Nasdaq 100’s gains recorded earlier this week, Bloomberg notes.

Analysts have already begun revising their estimates for Intel’s stock. Despite a strong quarter, the company issued a revenue forecast that fell short of market expectations. This was due to weak demand for personal computer processors and supply chain issues affecting chip manufacturing components. Following the release of this report, Bank of America withdrew its “buy” recommendation on Intel stock, while other analysts lowered their price targets for the chipmaker’s shares.

— Following the release of Intel’s earnings report, Bank of America downgraded its rating on the company’s stock from “buy” to “neutral” and lowered its price target from $145 to $100, according to CNBC. This is 9% above Thursday’s closing price. “The company has not yet demonstrated sufficiently convincing progress in attracting third-party customers for its contract chip manufacturing,” BofA analyst Vivek Arya wrote Friday in a note cited by CNBC. “At the same time, strong performance in the data center business is being offset by an unexpectedly sharp decline in PC shipments—[according to Intel’s forecast] by 25–30% quarter-over-quarter in the current period. In the first half of 2027, a further reduction in inventory is expected.”

Arya emphasized that Intel’s server processor segment is performing well amid growing demand from agent-based AI, but is facing supply constraints for certain key components. “At the same time, the company’s products still lag behind competitors in terms of technical specifications, while those competitors are growing 2–4 times faster,” the analyst added.

— UBS analyst Timothy Arcuri lowered his price target for Intel shares from $100 to $80. The new target implies a 13% decline from Thursday’s closing price. “Intel’s outlook turned out to be significantly worse than even the most pessimistic investor expectations due to much weaker-than-expected performance in the PC segment,” the analyst explained. “However, this is generally consistent with the comments Microsoft made during its earnings conference call last night.”

According to Arkuri, the outlook for the PC market’s recovery is not yet promising, as there are no signs of improvement in the situation regarding memory chip prices and supply, while demand for servers for agent-based AI applications continues to grow.

— Bernstein analyst Stacey Rasgon lowered his price target for Intel shares from $110 to $75, according to CNBC. The new target is nearly 19% below Thursday’s closing price. “Intel had been benefiting from exceptionally strong demand in the server market and favorable expectations regarding the outlook for its contract chip manufacturing business,” Rasgon wrote. — “However, because of this, investors turned a blind eye to the increasingly negative outlook for the PC market. Unfortunately, it was precisely this quarter that the company faced this problem in full force.”

What is even more disappointing to analysts is that the company’s management once again “clearly did not foresee this turn of events” and “continues to struggle to align production capacity with market demand.” According to Rasgon, Intel still has too much capacity for PC processors and not enough for server chips, “even though the current cycle of growing demand for them has been going on for a year.”

— Analysts at Jefferies, led by Blane Curtis, view it as a positive sign that Intel revised its revenue forecast downward due to weakening PC demand, rather than a deterioration in the outlook for its data center and artificial intelligence divisions, MarketWatch reports. However, they note that Intel will likely continue to lose market share throughout the coming year, “making it difficult to justify the company’s long-term investment appeal, even taking into account possible announcements of new customers for contract chip manufacturing and packaging.”

— Analysts at Morgan Stanley, led by Joseph Moore, believe that Intel’s stock does not look attractive even after the sharp drop in its price, according to MarketWatch. In their view, the company will continue to lose market share to competitors who do not have their own manufacturing facilities and therefore require less capital expenditure.

— Cantor Fitzgerald analyst C.J. Muse needed just five words to describe the company’s outlook: “Houston, we have a problem,” writes Benzinga. Muse maintained a neutral rating on Intel stock but lowered his price target from $125 to $90. He noted that the shortage of components for chip production is forcing a significant revision of the company’s financial forecasts. The analyst also lowered his forecast for Intel’s earnings per share in 2027 from $2.15 to $1.65, while Wall Street’s consensus estimate stands at $2.13 per share. He also pointed out Intel’s apparent loss of market share in the server processor segment to AMD.

This article was AI-translated and verified by a human editor