Intel Plunges in a Single Day... $137 Billion in Semiconductor Market Value Wiped Out

Intel's share price plunged 28.6% in a single day, marking its steepest drop since 1974 and the largest in 52 years. The crash was driven by an earnings outlook that fell short of market expectations, with the market value erased amounting to $137 billion (about 183 trillion won). Intel guided fourth-quarter (October–December) revenue to $15–16 billion, far below the $17.1 billion analysts had anticipated. Weak results were compounded by a production disruption caused by an explosion at a semiconductor fab in Israel.

The Philadelphia Semiconductor Index fell more than 7%. Nvidia dropped over 4%, while AMD and Qualcomm each plunged more than 10%, with around 860 trillion won in market capitalization wiped out from seven major semiconductor companies in a single day. SK Hynix shares listed in the U.S. also tumbled 8%.

Tech stocks that had surged on expectations of growing semiconductor demand driven by the spread of AI now face concerns over earnings and returns on investment. Jo Young-moo, director of NH Financial Research Institute, analyzed: "Some will maintain a balance between revenue and investment while advancing technology, but those moving more slowly are likely to run into difficulties," calling it "a typical pattern seen in the early stages of technological innovation."