The chipmaker posted a solid earnings beat for the third quarter, but its stock slumped the most in a single day since 1974 as higher memory expenses ate into profitability.
Intel’s shares plunged about 30% on Tuesday, marking the steepest one‑day drop since 1974, even though the chipmaker posted earnings that beat analysts’ third‑quarter forecasts.
Earnings Beat Amid Rising Costs
The company reported revenue of $15.2 billion, surpassing the consensus estimate of $14.8 billion, and earnings per share of $1.12 versus the expected $1.05. However, a surge in memory‑module expenses eroded profit margins, pushing operating margin down to 12.3% from 14.1% a year earlier.
Memory Prices Spike
Global demand for DRAM and NAND surged in the second half of 2026, driving unit costs up by roughly 18% YoY. Intel, which sources a large share of its memory internally, absorbed the higher price, resulting in a $650 million hit to its cost of goods sold.
Market Reaction
Investors reacted sharply, with the stock opening at $28.45 and closing near $20.30. The decline wiped out more than $150 billion in market capitalization, making it the largest single‑day loss for the company in over five decades.
- Revenue beat expectations
- Higher memory component costs
- Operating margin contraction
Analysts note that while the top‑line growth is encouraging, the margin pressure could persist if memory prices remain elevated. Some suggest Intel may need to accelerate its shift toward higher‑margin products such as AI accelerators.
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Related coverage: about Intel’s latest results on Intel Corporation on Momentum.