US Stock Market Move | Q4 guidance far below market expectations, Intel Corporation (INTC.US) falls over 28% after earnings.

On Friday, US semiconductor stocks fell collectively. Intel Corporation (INTC.US) dropped over 28%, AMD (AMD.US) and ARM (ARM.US) fell over 10%, Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR (TSM.US) fell nearly 4%, and NVIDIA Corporation (NVDA.US) dropped over 3%. On the news front, Intel Corporation released its third-quarter financial report. Data showed that Intel Corporation achieved revenue of $16.51 billion in the third quarter, up 21% year-over-year. Under GAAP, net income was $3.32 billion, down 18% year-over-year, with diluted earnings per share of $0.60, down 33% year-over-year. Non-GAAP performance was strong, with net income of $2.756 billion, up 169% year-over-year, and earnings per share of $0.52, significantly beating market expectations of $0.40. However, the company expects fourth-quarter non-GAAP earnings per share of only $0.25, with gross margin expected to drop to 38%, below the third quarter's 44.1%, and the profit outlook has raised market concerns.