BUZZ - Intel's market value is expected to evaporate by more than 120 billions dollars due to bleak chip industry prospects.

October 30 - ** Chipmaker Intel (INTC.O) saw its shares plunge 25.3% in premarket trading to $68.75 after releasing its third-quarter earnings report.

** If the decline persists, Intel's market capitalization will evaporate by more than $120 billion, potentially marking its largest single-day drop in over two years.

** The company expects (link) fourth-quarter revenue to be between $15 billion and $16 billion, below the expected $17.07 billion; adjusted earnings per share are projected at 25 cents, below the expected 43 cents — figures compiled by LSEG.

** The company lowered its fourth-quarter outlook, citing supply shortages in manufacturing, rising memory prices leading to weak personal computer demand, and production capacity cuts after an explosion at its Israel plant — an accident that will result in about $600 million in revenue losses over two quarters.

** The company expects negative cash flow in 2026 as it proceeds with its planned $20 billion investment to expand manufacturing capacity, with expenditures set to rise sharply in 2027.

** “I'm disappointed that we were unable to meet strong customer demand this quarter,” said Intel CEO Pat Gelsinger.

** However, the company reported that both third-quarter revenue and profits exceeded analysts’ expectations.

** Intel's weak outlook dragged down chip stocks; Nvidia NVDA.O, Broadcom AVGO.O, AMD AMD.O, Micron MU.O, and Qualcomm QCOM.O fell between 2.7% and 7%.

** As of the close of the previous trading day, Intel’s (INTC) share price has more than doubled so far this year.

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