Intel Tumbles 30% as PC Weakness Overshadows 78% AI Jump
Intel shares plunged almost 30% after its fourth-quarter forecast fell short of estimates, despite 78% growth in its data center and AI business.
European stocks open mixed with Spain's IBEX falling 1.0%, while US futures slide on Alphabet earnings.
European equities were mixed at the opening bell on Wednesday, with most benchmarks posting modest gains as Spanish stocks continued to underperform. Sentiment stayed cautious, particularly as US futures signalled a weaker open on Wall Street. The early moves were as follows:
Spain remained the outlier, with the IBEX slipping another 1.0% after a 1.5% drop the previous day pushed the index to a three-month trough.
Spanish banking stocks have been weighing heavily recently. Santander fell 5.6% on Tuesday even after reporting a 19% increase in profits. The fallout from Brazil's election shock is still being felt, with Lula's victory stoking fears of aggressive public spending and fiscal deterioration there. That has triggered a selloff in several large Spanish multinationals exposed to Brazil, including Santander, Telefónica and Mapfre.
For the wider market, the European Central Bank's policy decision later on Wednesday is a key event to navigate. But a more worrying signal is coming from across the Atlantic. S&P 500 futures were down 0.4% and Nasdaq futures slumped 1.2% after Alphabet's earnings revived concerns about the huge spending commitments tied to AI development.
The sharp post-earnings decline in Alphabet shares has put tech stocks back on edge, even though Microsoft's results provided a more encouraging picture. With Amazon earnings still ahead, investors have little breathing room heading into the final stretch of the week.
For now, European stocks are holding up relatively better than their US counterparts, but it is still early in the session. That could change as the day goes on, particularly if the tech selloff intensifies and weighs on broader sentiment.
Share to
Disclaimer: this article comes from third-party media and is provided for reference only. It does not constitute investment advice. Crypto and other financial products carry significant price volatility risk, so please make your own decisions carefully.
Intel shares plunged almost 30% after its fourth-quarter forecast fell short of estimates, despite 78% growth in its data center and AI business.
Stocks slipped, with the Nasdaq leading declines, after Amazon and Intel earnings raised AI cost concerns. Key technical support broke.
Tech stocks fell on Amazon and Intel earnings, oil climbed despite Trump's Iran war comments, and Treasury yields dropped. The dollar was mostly lower.
Elon Musk showcased new Neuralink demos on Oct. 30. The company remains private and most investors have no regulated way to buy shares.