Intel Shares Fall 27% Before Open on Weak Fourth-Quarter Outlook

Intel shares fell more than 27% in premarket trading Friday after the company issued a fourth-quarter outlook below expectations, putting the stock on pace for its steepest one-day loss since 1974.

Intel projected fourth-quarter revenue of $15 billion to $16 billion, below market expectations of about $17 billion. It forecast non-GAAP earnings per share of 25 cents, compared with expectations near 43 cents. The company also expects revenue from its client business to fall more than 20% from the prior quarter.

An accident at Intel’s Fab 28 plant in Israel is expected to reduce fourth-quarter revenue by about $300 million. The premarket decline extended a slide that had already exceeded 23% in after-hours trading following the results.

Third-quarter revenue and per-share earnings topped expectations. After the results, JPMorgan, Piper Sandler and Jefferies cut their price targets for Intel. The 1974 comparison depends on the decline holding through Friday’s regular-session close.