Published • loading... • Updated
Intel shares drop 18% on Israel factory blast, PC weakness
The company said the factory shutdown will cut revenue by about $600 million over two quarters and reduce fourth-quarter margins by 200 basis points.
- On Thursday, Intel shares plunged 18% after the company disclosed that a factory explosion in Israel will cost roughly $600 million in lost revenue over two quarters because the facility has been shut down for about two weeks.
- CEO Lip-Bu Tan cited memory price surges and availability issues forcing OEM partners to aggressively manage inventory to match softer sell-through, compounding the explosion's impact on Intel's near-term performance.
- Intel projects fourth-quarter revenue between $15 billion and $16 billion, missing analysts' average estimate of $17.07 billion, while gross margins are expected to narrow to 38% in the current period.
- Unless the stock recovers from after-hours losses, Intel stands to shed over $80 billion in market value as investors weigh production disruptions against the company's costly foundry expansion strategy.
- Finance chief David Zinsner said Intel planned to start ramping up production by week's end, though the company expects PC revenue to remain challenged through the first half of 2027.
Insights by Ground AI
Podcasts & Opinions
12 Articles
12 Articles
Intel shares plunge 16% as Israel plant blast adds $600M hit
Intel forecasts weaker-than-expected fourth-quarter sales as the PC market slows and a deadly explosion at its Kiryat Gat plant threatens $600 million in lost revenue; Alphabet and Amazon shares also tumble as AI spending weighs on Wall Street
·Tel Aviv-Yafo, Israel
Read Full Article
Intel shares drop 18% on Israel factory blast, PC weakness
Oct 29 : Intel shares plunged some 18 per cent on Thursday after the company disclosed that a factory explosion in Israel will cost it roughly $600 million in lost revenue over two quarters because it has been shut down for about two weeks. The October explosion at its Kiryat Gat, Israel factory, or fab, kil
·Singapore, Singapore
Read Full Article
Coverage Details
Total News Sources12
Leaning Left1Leaning Right2Center2Last UpdatedBias Distribution40% Center, 40% Right
Bias Distribution
- 40% of the sources are Center, 40% of the sources lean Right
40% Right
L 20%
C 40%
R 40%
Factuality
To view factuality data please Upgrade to Premium
