Intel shares drop 21% on Israel factory blast, PC weakness

On October 29, Intel's shares fell 21% following a deadly explosion at its Israel factory, which is expected to reduce revenue by $600 million over two quarters. The PC market weakness is also expected to impact sales in the first half of next year. Intel's forecast was below estimates, and memory price increases have weighed on sales.

Intel's stock could lose over $80 billion in market value if it doesn't recover by Friday's session. The company's PC revenue is expected to decline by 20% in the fourth quarter, and its overall revenue is expected to be between $15 billion and $16 billion, which is lower than analysts' average estimate of $17.07 billion. Intel is investing in expanding manufacturing capacity, but it does not expect to have positive cash flow this year due to these investments.