{"id":665837,"date":"2026-11-03T17:52:27","date_gmt":"2026-11-03T17:52:27","guid":{"rendered":"https:\/\/www.newsbeep.com\/il\/665837\/"},"modified":"2026-11-03T17:52:27","modified_gmt":"2026-11-03T17:52:27","slug":"why-intel-stock-collapsed-23-4-last-month","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/il\/665837\/","title":{"rendered":"Why Intel Stock Collapsed 23.4% Last Month"},"content":{"rendered":"\n

Shares of Intel (NASDAQ: INTC) fell 23.4% in October, according to data from S&P Global Market Intelligence<\/a>. The semiconductor giant has seen its share price begin to slip due to weak demand in the PC market, its second-largest revenue generator after artificial intelligence (AI<\/a>). <\/p>\n

There are also doubts about the future of its outsourced manufacturing foundry business. Here’s why Intel stock collapsed in October, and why it is now down over 50% from its highs. <\/p>\n

Missed AI’s “Act 1”? Act 2 Could Be 16x Bigger. Most investors think they missed the AI boat because they didn’t buy Nvidia in 2005. But according to our analysts, we’re only at the end of “Act 1″\u2014the R&D phase. “Act 2” is the global rollout. Continue \u00bb<\/a> <\/p>\n

Revenue guidance disappointment <\/p>\n

Intel is trying to build three business lines for the future of computing. First, it is selling computer chips for personal computers (PCs). Second is its own data center and AI computer chips. Third, it manufactures computer chips for third parties, a process called a foundry. <\/p>\n

The second line is doing quite well at the moment, with Intel’s data center and AI segment posting 78% revenue growth to $7.3 billion last quarter. However, it is the traditional PC business that is showing signs of strain, with revenue down 5% last quarter and guidance for weak upcoming quarters. This is due to rising costs for computer chips around the globe, which is putting a dent in demand for people to buy their own computers. <\/p>\n

Third is the foundry business. Its revenue grew 58% to $6.7 billion, but investors are expecting much more for a business that is backed by the U.S. government and important to the AI trade. Its largest competitor, Taiwan Semiconductor Manufacturing, grew revenue by 41% year-over-year, on a much larger revenue scale of $47 billion. Intel’s foundry business is also losing money at over $1 billion per quarter. <\/p>\n

\"Two<\/a> Image source: Getty Images. Intel’s shaky turnaround <\/p>\n

Investors have made large bets on Intel as the United States’ champion in AI chip manufacturing. The stock is still up 57% over the past year, even after this drawdown. <\/p>\n

However, when you look at its guidance vs. the stock’s valuation, it is hard to make a case for owning shares today. The stock trades at a market cap of $329 billion. Over the last twelve months, Intel’s revenue was $60 billion, or a price-to-sales ratio (P\/S<\/a>) of 5.3. The business is growing again but will face headwinds from the PC market and is not as well positioned to capitalize on the AI boom as investors would have liked. <\/p>\n

For that reason, the stock is likely one to avoid for the time being. <\/p>\n

Should you buy stock in Intel right now? <\/p>\n

Before you buy stock in Intel, consider this: <\/p>\n

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks<\/a> for investors to buy now\u2026 and Intel wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. <\/p>\n

Consider when Netflix made this list on December 17, 2004… if you invested $1,000 at the time of our recommendation, you’d have $336,195!* Or when Nvidia made this list on April 15, 2005… if you invested $1,000 at the time of our recommendation, you’d have $1,241,567!* <\/p>\n

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See the 10 stocks \u00bb<\/a> <\/p>\n

*Stock Advisor returns as of November 3, 2026. <\/p>\n

Brett Schafer<\/a> has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Intel and Taiwan Semiconductor Manufacturing. The Motley Fool has a disclosure policy<\/a>. <\/p>\n

Why Intel Stock Collapsed 23.4% Last Month<\/a> was originally published by The Motley Fool <\/p>\n","protected":false},"excerpt":{"rendered":"Shares of Intel (NASDAQ: INTC) fell 23.4% in October, according to data from S&P Global Market Intelligence. The…\n","protected":false},"author":2,"featured_media":665838,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[6638,114,357,184,268,13368,42,4141,13516,9445,2450,8553,9331,43,266,13517,4861,688,5615,13369,13370,5268,13518,270,40,38,41,39,13519],"class_list":["post-665837","post","type-post","status-publish","format-standard","has-post-thumbnail","category-headlines","tag-401k","tag-business","tag-business-news","tag-economy","tag-finance","tag-financial-information","tag-headlines","tag-investing","tag-investment-tools","tag-investor","tag-market-news","tag-mortgage","tag-mutual-funds","tag-news","tag-personal-finance","tag-quote","tag-real-estate","tag-retirement","tag-stock","tag-stock-research","tag-stock-valuation","tag-stocks","tag-suze-orman","tag-tax","tag-top-news","tag-top-stories","tag-topnews","tag-topstories","tag-track-portfolio"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/665837","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/comments?post=665837"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/665837\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media\/665838"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media?parent=665837"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/categories?post=665837"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/tags?post=665837"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}