Intel plunges 21% as PC slowdown clouds chip earnings

· Tech · United States

Intel shares fell 21% after the chipmaker blamed a slowing personal-computer market for weak guidance, souring a year in which it had become a Wall Street favourite on its emergence as an AI player. The sell-off sent shivers through other cooling chip stocks and helped pull Nasdaq-100 futures lower as Amazon also slumped after earnings. Amazon reported negative free cash flow of $42.4 billion, held 2026 capital spending unchanged and its earnings and revenue fell short of expectations, even as its AWS cloud unit posted 39% revenue growth. Amazon's CEO said AI infrastructure spending will be "meaningfully" higher than $220 billion in 2027. ServiceNow also recorded its worst day, falling 27%, on AI-disruption fears.

Why it matters：Mixed chip and cloud results show the AI boom is not lifting all technology firms equally, feeding a rotation out of the trade that can move global equity markets.

Key points

  • Intel blamed a PC slowdown for its weak guidance.
  • Amazon's AWS revenue grew 39%, but free cash flow was negative $42.4 billion.
  • ServiceNow fell 27% in its worst day ever.

Sources (original reporting)

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