By Ahmed Abdelsalam
Intel shares are set to fall 25% when U.S. markets open on Friday, wiping about $121.7 billion off the chipmaker’s market capitalization, after the company warned it would miss fourth‑quarter earnings forecasts by as much as $3 billion and said adjusted profit per share would be roughly 40% below expectations.
Intel misses forecasts, warns on 2027
Chief Executive Lip‑Bu Tan told investors that 2027 will be “a very severe issue to all of us” because of rising memory‑chip costs, adding that the whole market is affected. The shortfall breaks a run of stronger recent quarters and highlights how cost inflation in memory components is starting to hurt other parts of the AI supply chain.
Alphabet shares tumble on AI spending concerns
Google’s parent company Alphabet saw its stock drop nearly 14% on Thursday, erasing about $500 billion in market value, as investors reacted to higher artificial‑intelligence spending, weaker search revenue and doubts that future AI‑related profits will materialize.
Broader tech sell‑off hits Nasdaq
The Nasdaq 100 index of major U.S. tech firms fell 1.4% on Thursday and was poised to open 2.4% lower on Friday. Analyst Kathleen Brooks of XTB said Intel’s plunge signals that memory‑chip price pressures are spreading through the AI industry and that the tech rally is unlikely to recover immediately.
