Intel Shares Plunge After Deadly Explosion at Israel Factory
Chipmaking giant Intel (NASDAQ: INTC) saw its shares fall as much as 18% to 21% in after-hours trading on October 29, 2026, after it detailed the financial impact of a deadly explosion at its semiconductor fabrication facility in Kiryat Gat, Israel. The disruption could cost the company roughly $600 million in lost revenue over two consecutive quarters.
The October blast killed two workers and seriously injured another. The facility, a major Intel manufacturing site that primarily produces data center chips using the company’s 10-nanometer process, was shut down for approximately two weeks.
Finance chief David Zinsner said Intel plans to ramp production back up by the end of the week. Engineers are assessing which semiconductor wafers can still be salvaged.
The incident added to an already gloomy quarterly outlook. Intel forecast:
- Q4 revenue: $15 billion to $16 billion, below analysts’ average estimate of $17.07 billion.
- Adjusted profit: 25 cents per share, short of the consensus estimate of 43 cents.
- PC revenue: A decline in the mid-twenty percentage range, as the PC market slows.
CEO Lip-Bu Tan said he was “disappointed” that Intel could not meet customer demand. The weak results also weighed on other chipmakers, including Nvidia, AMD, Broadcom, Qualcomm, and Arm Holdings.
Source: Reuters via Lufkin Daily News – Intel shares drop on Israel factory blast