Intel -29%, Reddit -29%: the dark session that shook Wall Street

Coin Encyclopedia Improve your knowledge of cryptos

Artificial intelligence weighs on both titles, for opposite reasons. The Nasdaq closed October with its worst month since March 2025, the same day Bitcoin suffered the Binance hack.

However, the third quarter results were good. Intel published Thursday evening a turnover up 21% year-on-year and data center activity up 78%. Nobody looked at them. The group expects between 15 and 16 billion dollars in revenue for the fourth quarter, when analysts were expecting around 17 billion, and earnings per share of 0.25 dollars against 0.43 expected.

What follows is enough to dampen the most optimistic minds. Intel forecasts a drop of around 12% in PC deliveries this year, then 10% in 2027. An accident in its Israeli factory is also expected to reduce the quarter by $300 million in sales. Bernstein analyst Stacy Rasgon summed it up in one word (“terrible”) and lowered her price target from $110 to $75, reports Yahoo Finance.

The stock ended -29%, around $66. It was trading at nearly $141 in June. More than $100 billion of Intel's capitalization evaporated during the day. “Rebuilding Intel will take several years,” admitted its boss, Lip-Bu Tan.

Reddit fell for another reason. Its boss Steve Huffman admitted Thursday that referrals from Google had fallen by more than a million per week on average in October, because of responses generated by the engine's AI. “The AI ​​mode does not bring traffic, neither to us nor to anyone that I know of,” he told investors. The social network expects to lose daily active users in the fourth quarter. Result, a drop of 44% over the week according to Decrypt.

The rest of the Nasdaq followed. The composite index recorded its biggest decline since June and the Nasdaq 100 lost 3.5%, on the verge of correction, according to the Reuters session report. Sandisk lost 13%. “Investors are suddenly voting, and all together, on who will make a profit on their investments and who will not,” commented Brian Jacobsen of Annex Wealth Management.

Apple benefited from the sorting. The Cupertino firm has moved back ahead of Nvidia as the world's largest capitalization, at $5,030 billion compared to $4,940 billion for the chip manufacturer, according to Bloomberg. Demand for the iPhone carried the stock as stocks linked to AI spending stalled.

Machine-translated from French