Intel shares sink 29% on weak outlook as Accenture leads S&P 500 in October

what happened

According to Barron's, Intel shares fell 29% on Friday to $65.58 after the chipmaker posted mixed third-quarter earnings and a disappointing forecast for the current quarter. The stock is down 45% in October, which would be its worst month on record, according to Dow Jones Market Data. Most of that loss came on Friday.

The company links the pressure to sharply higher memory chip costs that are hurting its PC business. Intel called 2027 an "investment year" and warned that it does not expect positive free cash flow.

Reddit shares dropped 28% on Friday after weaker-than-expected user growth in the third quarter. Teradyne, Twilio and Sandisk also ranked among the S&P 500's worst performers in October, as worries about artificial-intelligence spending and high valuations weighed on technology stocks.

why it matters

The slides in Intel and Reddit show investors becoming stricter with technology companies whose cash flow is uncertain. At the same time, Accenture's rally of nearly 40% during the month suggests the market will pay for proven consulting demand in the AI era.

market impact

Intel and tech sector: weak outlook and rising costs weigh on the shares

• ▼Intel shares pressure down — weak outlook and higher memory costs hit revenue and free cash flow

tags

instruments