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Intel shares fell 28.58% on Friday to $65.76. The stock was headed for its worst day since 1974 and its second-steepest decline on record, according to CNBC. Intel’s finance chief, David Zinsner, said the lost revenue would total about $600 million over two quarters. Global PC shipments fell 4% in the second quarter versus a year earlier, according to Counterpoint Research. Intel forecast revenue of $15 billion to $16 billion for the current quarter, below analysts’ expectations of $17.1 billion, according to LSEG. The company also projected adjusted earnings of 25 cents per share, below analysts’ 43 cents per share.
Adjusted earnings exclude certain items from the company’s reported results. The decline followed a weaker-than-expected forecast that reflected an extended shutdown at a chip plant in Israel and continued weakness in the personal computer market. The disruption adds to pressure from a slowing PC market, where rising costs for memory and other components are affecting demand.