Intel Logs Worst Daily Drop Since 1970s: Buy the Dip With ETFs?

Chip behemoth Intel's INTC shares plunged 29% on Oct. 30, 2026, marking their worst single-day decline since the 1970s, per CNBC. The sharp selloff followed weaker-than-expected guidance from the chipmaker, which cited a plant shutdown in Israel and continued weakness in the PC market.Intel's client business is also facing memory shortages.

The steep decline is a major setback for the company, which has been trying to turn around its business after it missed out on the early stages of the artificial intelligence (AI) boom. INTC shares are up 29% over the past five years, compared with chip behemoth NVIDIANVDA's 588% gains (as of Oct. 30, 2026).

Before Thursday's earnings announcement, Intel shares had enjoyed a strong rally since April this year.  The rally was supported by rising demand for central processing units (CPUs), which are becoming increasingly important for agentic AI workloads. However, the disappointing outlook quickly changed investor sentiment.

AI Spending Concerns Add to Investor Nervousness

Intel's selloff comes at a time when investors are questioning whether massive AI investments by big technology companies will generate adequate returns.

Weak PC Market Weighs on Intel's Outlook

A key reason behind Intel's cautious forecast is the slowdown in the PC market. Surging prices of memory chips and other components are putting pressure on the industry. Management expects the PC slowdown to continue at least through the first half of next year.

Intel expects adjusted earnings of 25 cents per share in the current quarter, on revenue of $15 billion to $16 billion. Both forecasts fell short of analysts' expectations. According to LSEG, analysts had projected earnings of 43 cents per share and revenue of $17.1 billion, as quoted on the same CNBC article.

Foundry Business Remains Critical to Intel's Turnaround

Intel's foundry business remains central to its turnaround strategy, although the segment has struggled to attract external customers. Foundry revenues climbed 58% year over year. External foundry revenues were $411 million, up $118 million sequentially, primarily due to a non-recurring customer program.

The company is the only U.S.-based manufacturer of advanced logic chips. This gives U.S. customers an alternative to Taiwan Semiconductor Manufacturing Co.(TSMC), the world's leading contract chipmaker, as mentioned by CNBC.

Intel's next Arizona fab is expected to begin operations by the end of 2028. However, the company has yet to secure external customers for its new chips.