Intel has its worst day since 1974 after a weak outlook drags the Nasdaq down

Intel shares fell nearly 29 percent on 30 October, their worst day since 1974. The company had beaten its own targets for the third quarter, with revenue up 21 percent to about 16 and a half billion dollars. But it guided the fourth quarter lower, citing a PC slowdown it expects to last at least through the first half of next year. The Nasdaq fell almost 3 percent the same day, its biggest drop since June.

Data-centre and AI revenue rose 78 percent and the foundry business 58 percent, while PC chips shrank 5 percent. Intel expects fourth-quarter revenue of 15 to 16 billion dollars and a gross margin near 38 percent on an adjusted basis, down from 44 percent. Together with Amazon's negative cash flow, the outlook revived worries about how long the AI spending boom can run. The Nasdaq ended October more than 5 percent lower.