Intel Shares Plunge Up to 23% Following Disappointing Guidance

Despite beating profit estimates, Intel shares tumbled after weak quarterly guidance and an estimated $300 million hit from an explosion at its Kiryat Gat plant.

Shares of semiconductor giant Intel plunged between 20% and 23% following the release of its financial results and disappointing fourth-quarter guidance, as reported by financial daily Globes and Hungarian news outlet Portfolio.hu.

Although the company beat earnings expectations with a profit of 52 cents per share compared to a forecast of 40 cents, its outlook was dampened by weakness in the personal computer market, capacity expansion costs, and manufacturing disruptions. According to Globes, Intel projects that an explosion at its manufacturing plant in Kiryat Gat will reduce expected revenue by approximately $300 million.

Further details regarding the overall impact on the company's global operations have not yet been released.