Intel stock drops over 25% after disappointing Q4 guidance

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Intel drops over 25% after earnings

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Mykhailo Ihnatenko

18 hours ago

Intel stock drops over 25% after disappointing Q4 guidance — Intel plunges as weak guidance shocks investors

Intel is facing a brutal post-earnings sell-off as strong quarterly results are overshadowed by a much weaker outlook. The next test is whether $64.50 can hold after the stock opened a gap of more than 25%.

INTC price prediction

24H -2.42%

$63.79

48H -3.38%

$63.16

7D -3.14%

$63.32

1M -52.5%

$31.05

3M -52.59%

$30.99

6M -42.24%

$37.76

12M 4.47%

$68.29

Detailed

Current price: $65.37 -26.7000 29.00%

Closed 10/30

Daily range 63.22

67.35

Weekly range 63.22

95.68

Intel reported a 21% rise in its quarterly revenues to $16.5 billion after the market close on October 29. The adjusted earning per share was recorded at $0.52, which was well above the consensus of $0.40 per share.

Unfortunately for the company, its guidance did not go down well with investors. It expects its fourth-quarter revenues to be between $15 and $16 billion, with an earning per share of $0.25, compared with analyst expectations of roughly $17 billion and $0.43, respectively.

The weaker guidance reflects a slowdown in the PC market, manufacturing constraints and heavy capital spending. Another setback came from an explosion at Intel’s facility in Israel, which could reduce revenue by approximately $600 million over two quarters.

A massive earnings gap puts $64.50 support in focus

Intel stock completed the scenario outlined previously, falling toward the $90 target.

After the earnings release, the shares plunged more than 25% in premarket trading. The risk of a wide post-earnings price gap had also been highlighted earlier.

Trading against the direction of such a large gap carries considerable risk today. The base case remains a move toward the nearest support at $64.50.

At the same time, an intraday rebound cannot be ruled out. A recovery and sustained move above $70 would invalidate the bearish setup and create room for a short-term recovery.

Why waiting for earnings can protect trading capital

Moves like this show why we regularly caution short-term traders against holding positions through major earnings releases. A gap of more than 25% can cause substantial losses, particularly when leverage is involved.

A more measured approach is to wait for the financial results and the market’s initial reaction before considering new positions. That removes much of the uncertainty created by violent after-hours moves and allows traders to assess the new price structure first.

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