NEW YORK — Shares of Intel fell Thursday, extending losses after an explosion at one of its manufacturing facilities in Israel and a broader decline in semiconductor stocks tied to inflation concerns.
Intel traded near $94 in midday trading, down about 4 percent, after closing Wednesday at $98.12, a drop of 4.6 percent. The stock has retreated from recent highs as investors reassess growth expectations across the chip industry.
Reports of an explosion at Intel’s Kiryat Gat plant in Israel, one of the company’s major manufacturing sites, contributed to Wednesday’s decline. Local authorities said three people were seriously injured. Police and fire officials indicated an exploding gas cylinder was the suspected cause, though the exact circumstances remained under investigation. A fire was extinguished, and officials said there was no evidence of a terrorist attack. The plant produces chips used in personal computers.
Intel did not immediately issue a detailed public statement on the incident’s operational impact. The company has described the facility as a key site that has manufactured chips for more than 20 years.
The stock also moved lower alongside peers including AMD and Nvidia as hotter-than-expected U.S. inflation data weighed on technology shares. September consumer prices rose 3.7 percent year-over-year, above forecasts, raising expectations that interest rates could remain elevated and increase financing costs for large capital projects.
Additional pressure came from reports that Elon Musk’s Terafab chip initiative is in discussions with TSMC about manufacturing capacity, which some investors viewed as potentially affecting Intel’s role in related foundry projects. Intel has been working to expand its foundry business as part of its turnaround strategy.
No company-specific earnings release drove Thursday’s move. Intel is scheduled to report quarterly results later this month. The company did not immediately respond to requests for comment on the stock performance. The broader semiconductor sector has faced volatility as markets weigh AI-related spending against higher interest rates and operational risks.
