Intel’s shares plunged 45% in October, weighed down by dual pressures of a weak PC business and a confidence crisis among its foundry clients.

Intel's stock has suffered a historic plunge, falling 45% in October to mark its worst monthly performance in company history. On the last trading day of October, the stock plummeted 29% in a single session — its largest one-day drop since the 1970s — and fell another 8% on the first trading day of November. The slump was primarily driven by a profit warning. Intel projects its revenue for the current quarter will be $1 billion to $2 billion lower than analysts' estimates, citing weak PC market demand and high costs for memory and other components. The PC business still contributes around half of the company's total revenue. Meanwhile, while Intel's data center business remains growing, insufficient production capacity has forced the firm to shift some capacity at its Oregon factories from the advanced 18A process to the Intel 3 process to boost server CPU supply. This adjustment has sparked external concerns over its advanced process capacity and foundry delivery capabilities. Harvard Business School professor David Yoffie warned that if Intel fails to provide sufficient capacity beyond its own needs, it will struggle to become a trusted foundry supplier. Intel CEO Chen Liwu said the company plans to announce several foundry clients over the next two quarters, with progress in customer expansion being key to its foundry business transformation. D.A. Davidson cut Intel's rating from Buy to Neutral, noting that while the PC sector faces industry-wide pressure, the severity of its business weakness has made current valuations unsustainable. Raymond James Chief Market Strategist Matt Orton argued that the current period is not a "liquidation moment" for the AI sector, with fundamentals remaining strong, though investors need to re-examine the still-crowded positions in the space.