Intel set to shed over $120 billion in market value as weak outlook hits chip sector

QUALCOMM Incorporated

Today 10:42

** Chipmaker Intel's INTC.O shares tumble 25.3% to $68.75 premarket after co reports Q3 results 
** INTEL set to shed more than $120 billion in market cap, and is on track for its biggest percentage drop in more than two years, if losses hold 
** Co forecasts fourth-quarter revenue of $15 billion to $16 billion, below estimates of $17.07 billion, and adjusted earnings of 25 cents per share, below estimates of 43 cents  - data compiled by LSEG
** Co lowers its Q4 outlook due to manufacturing supply shortages, weak PC demand amid rising memory prices and reduced production capacity following an explosion at its Israel plant costing about $600 million in revenue over two quarters 
** Co expects negative cash flow in 2026 as it is on track to invest $20 billion in expanding manufacturing capacity, with spending set to rise sharply in 2027 
** "I'm disappointed that we were not able to meet strong customer demand in this quarter," Intel CEO Lip-Bu Tan said
** But co reports Q3 rev and profit beating analysts' estimates 
** Co's weak outlook weighs on chip stocks; Nvidia NVDA.O, Broadcom AVGO.O, AMD AMD.O, Micron MU.O and Qualcomm QCOM.O down 2.7% to 7%
** As of last close, INTC stock more than doubled YTD 

 (Reporting by Jayasree Prabhu)
 ((jayasree.prabhu@thomsonreuters.com))