Intel Stock Crashes 23% Overnight and Gets Jim Cramer 'Furious': 'I Am Actually Disappointed'

Benzinga · 4d ago

Intel Corp. (NASDAQ:INTC) stock fell 23% in after-hours trading on Thursday as the company’s fourth-quarter guide disappointed investors, drawing an angry reaction from CNBC’s Jim Cramer.

Investors React to Weak Guide

In a post on X, Cramer said he was “disappointed in Intel,” which he named his favorite stock earlier this year, adding that he was “actually furious about it.”

Moor Insights & Strategy CEO Patrick Moorhead called it a “good” quarter with a “very challenging guide.”

Author and investor Jeff Macke questioned “the point of the government taking over companies if we are going to let them miss estimates.”

Memory Costs Hit PC Demand

Deepwater Asset Management’s Gene Munster said PC demand is the main issue, with the company pointing to high memory costs as the reason demand is slowing.

He added that Intel’s weak guide should not be applied to Nvidia Corp. which has been beating estimates despite high memory costs.

Former BlackRock Inc. portfolio manager Edward Dowd called the hit to PC demand from higher memory prices as “demand destruction.”

Not a Demand Issue, Some Analysts Say

Futurum Group CEO Daniel Newman said the weak guide “isn’t a demand issue” and is more about “expanding capacity and perhaps mix shift.”

Futurum’s market strategist Shay Boloor noted that Intel’s CEO Lip-Bu Tan cited “extraordinary demand” for its Xeon family but named production yields, substrate shortages and an Israel factory shutdown as headwinds limiting shipments.

The timing is bad, Boloor said, with Advanced Micro Devices Inc. and Nvidia pushing deeper into server CPUs, where losing a customer today could cost years of future business.

Beats on Q3, Guides Below Estimates

Intel reported third quarter earnings of 52 cents per share, which beat the consensus estimate of 40 cents by 30%, per Benzinga Pro data. Revenue came in at $16.51 billion, which beat the analyst estimate of $16.47 billion.

The company expects fourth-quarter adjusted EPS of 25 cents, versus the 43-cent analyst estimate, and revenue of $15 billion to $16 billion, versus the $17.05 billion estimate.

Price Action: Shares closed 3.62% lower on Thursday at $92.07 and tumbled 23.03% to $70.87 in extended trading on the earnings announcement.

Benzinga Edge rankings show Intel’s stock has a Momentum score in the 95th percentile, with a negative short- and medium-term price trend. In the long term, the stock has a positive price trend.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.