Intel Suffers Worst Day Since 1974 After Weak Forecast

Intel shares fell about 29% on Friday, the chipmaker's worst single-day decline since 1974. The drop followed a weak fourth-quarter forecast, which the company tied to a slump in PC demand and a factory accident in Israel.

The move helped drag the broader semiconductor group lower and added to a sell-off that pushed the Nasdaq down nearly 3%. Reddit also fell about 29% after giving a softer fourth-quarter revenue outlook, with commentary suggesting AI is eating into software businesses.

Investors will be watching whether Intel's supply disruption proves temporary and whether PC demand stabilizes. The reaction also raises questions for other hardware-exposed names, including server makers, as the market reassesses AI-related expectations.