Intel Stock Plunge 28.6% Drags Nasdaq in AI Selloff
The Intel stock plunge of 28.6% on 30 October followed a weak Q4 forecast. The Nasdaq fell 2.86% as Amazon’s AI cash outflow added to spending fears. See the numbers and what they mean.
TL;DR
• Intel shares closed 28.6% lower on 30 October after it forecast Q4 revenue of $15.0 billion to $16.0 billion. Analysts had expected $17.07 billion.
• One report called it Intel’s worst day since the 1970s. The Nasdaq Composite fell 2.86% and the chips index fell 7.2%.
• Intel’s data centre and AI revenue rose 78% to $7.3 billion, so the fall points to PCs, supply and cash burn more than a clear drop in AI demand.
• Amazon’s AWS grew 39%, but its trailing free cash flow was an outflow of $42.4 billion, which Amazon linked mainly to AI investment.
Intel Stock Plunge of 28.6% Drags Nasdaq Down 2.9% in AI Selloff
The Intel stock plunge on Friday, 30 October 2026, helped pull the Nasdaq Composite down 2.86%, its biggest one-day percentage fall since 5 June. Intel shares closed 28.6% lower, a day after the chipmaker forecast fourth-quarter revenue below analyst estimates. One report called it the stock’s worst day since the 1970s.
What caused the Intel stock plunge
Intel reported third-quarter results after the US market closed on 29 October. Per its release, revenue rose 21% to $16.5 billion and non-GAAP earnings were $0.52 a share.
The fourth-quarter outlook was the problem. Intel guided to revenue of $15.0 billion to $16.0 billion and non-GAAP earnings of $0.25 a share. Analysts had expected $17.07 billion and 43 cents, according to market data.
• Chief financial officer David Zinsner said Intel expects the PC slowdown to continue at least through the first half of next year.
• Intel expects PC chip revenue to fall in the mid-20% range in the fourth quarter. Zinsner said the company does not expect positive cash flow this year as it expands manufacturing capacity.
• An October explosion at Intel’s Israel plant would remove about $600 million in revenue over two quarters, a figure Intel gave to reporters.
• CEO Lip-Bu Tan said he was disappointed Intel could not meet strong customer demand this quarter.
Demand was not weak everywhere. Intel’s data centre and AI revenue grew 78% to $7.3 billion.
Amazon’s results add to the AI spending fears
Amazon also reported on 29 October. Its results showed net sales up 12% to $201.9 billion, AWS sales up 39% to $46.0 billion and operating income of $28.1 billion.
The concern was cash. Amazon said free cash flow was an outflow of $42.4 billion over the trailing twelve months. It linked this mainly to a $94.8 billion year-on-year rise in purchases of property and equipment, which it said primarily reflects investment in AI. Amazon still expects 2026 cash capital expenditure of about $220 billion.
Both companies’ results were seen as disappointing. Amazon pared its losses during the session, and its shares slipped 1.4%.
How the Nasdaq and chip stocks closed on 30 October
The closing figures show how widely the damage spread:
• Nasdaq Composite: down 2.86% to 25,437.00, which is 7.8% below its 6 October record close.
• S&P 500: down 1.82%. Dow Jones Industrial Average: down 1.09%.
• Chip stocks: AMD fell 10.9% and Nvidia fell 4.2%. The broader chips index lost 7.2% and is down more than 15% for the month.
• Server makers: Dell fell 10.8% and HP fell 9.6%.
One market strategist said the week came down to whether there will be a positive return on investment from AI, and if so, how quickly.
What the Intel stock plunge means
• Intel’s fall looks mostly company-specific. A weak PC market, limited manufacturing supply, an expected cash burn and the plant disruption all weighed. Its data centre and AI revenue grew strongly, so the results do not by themselves show falling AI chip demand.
• The wider selloff looks like a test of patience. Amazon reported strong cloud growth alongside a deeply negative free cash flow that it ties to AI investment. Investors seem to be asking how long such spending can run before returns arrive. A single day of trading cannot settle that.
The bull case:
• Intel’s data centre and AI revenue grew 78%.
• AWS sales grew 39%.
• Amazon has kept its 2026 capital spending plan at about $220 billion.
• Intel’s third-quarter revenue rose 21%.
The bear case:
• Intel’s Q4 forecast came in well below analyst estimates.
• Intel does not expect positive cash flow this year.
• The chips index is down more than 15% for the month.
• Amazon’s trailing free cash flow is an outflow of $42.4 billion.
Other big spenders face the same pressure. See our reports on OpenAI’s smaller funding round.
The bottom line
Intel’s plunge came from its own weak forecast, but it landed on a market already nervous about AI spending. Amazon’s cash outflow gave investors another reason to ask when the returns will show up. The next results from large technology companies will show whether spending plans hold. Prices have moved since 30 October, and this article does not cover later trading.
