Intel Corporation (NASDAQ: INTC) shares fell more than 8% to close at $85.49 on Thursday amid a broad semiconductor selloff after Tesla and Meta Platforms released their quarterly earnings reports.
Tesla lowered its 2026 capital expenditure forecast to approximately $20 billion from more than $25 billion. Meta, meanwhile, raised the lower end of its 2026 capital expenditure outlook to $135 billion from $130 billion, retained its $145 billion upper limit, and announced plans for a new class of non-voting shares.
Tesla’s lower spending forecast raised investor concerns about the pace of its AI and robotics expansion. At the same time, Meta’s increased spending and financing plans renewed scrutiny of AI investment costs.
The Philadelphia Semiconductor Index dropped approximately 6.7%, while the Nasdaq Composite declined 2.60%.
Chip-equipment maker Lam Research also came under pressure after forecasting December-quarter revenue of $8.6 billion, plus or minus $400 million, an outlook broadly in line with analysts’ estimates.
Tesla Cuts Spending Forecast as Meta Expands AI Investment
Tesla’s revised outlook followed third-quarter capital expenditures of $4.73 billion, well below analysts’ expectations of $7.95 billion, according to Bloomberg estimates.
Chief Financial Officer Vaibhav Taneja attributed the lower annual forecast to more efficient capital deployment and said Tesla planned to fund its spending primarily through operating cash flow.
The company generated approximately $1.53 billion in free cash flow during the quarter. Tesla also expects capital spending to increase in coming years as it expands investments in autonomous vehicles, robotics, manufacturing, and AI computing infrastructure.
Meta’s higher spending forecast came alongside stronger-than-expected quarterly revenue.
The Facebook parent generated $64.6 billion in third-quarter revenue, up 26% from a year earlier, but reported negative free cash flow of $2.12 billion. Its shares declined more than 7% on Thursday as the company’s AI investment costs drew attention.
Meta also approved creating a new class of nonvoting Class C common stock for public trading. The new shares could allow Meta to raise equity capital for future growth, including AI infrastructure investment, without diluting existing shareholders’ voting power or Chief Executive Officer Mark Zuckerberg’s control. The company also identified acquisitions and employee compensation as potential uses.
The initial distribution of Class C shares would not raise cash, and Meta did not announce an immediate equity offering.
Intel Stock Gives Back Recent Gains
Thursday’s decline pushed Intel below its October 16 closing price of $89.85, erasing the recovery that had lifted shares to $92.96 by Wednesday.
The stock also closed 28.8% below its October 1 closing price of $120, extending its sharp October losses.
Separately, Susquehanna analyst Christopher Rolland lowered his price target on Intel to $105 from $115 on Wednesday, October 21, while maintaining a Neutral rating.
