Intel shares fell roughly 25% in premarket trading in New York on Friday after the chipmaker issued fourth-quarter guidance that missed analysts' estimates.

According to Bloomberg, Intel guided to fourth-quarter sales of $15 billion to $16 billion, well below the analyst consensus of $17 billion, with some projections topping $18 billion.

The company also forecast adjusted profit of 25 cents a share, excluding certain items, versus Wall Street's projection of 43 cents.

Bloomberg reports the weak forecast reflects sputtering demand for PC processors — the core of Intel's business — compounded by supply-chain problems affecting its lucrative data center components.

CNBC likewise attributed Intel's slide to weaker-than-expected guidance citing ongoing softness in the PC market.

The revenue gap is unusually wide: even the top of Intel's own range sits roughly $1 billion below the average analyst estimate, and the earnings shortfall cuts the consensus almost in half.

Both the demand side and the supply side of the business deteriorated at once, leaving no offsetting strength to lean on.

The plunge capped a punishing stretch for Big Tech. Amazon fell 7% in premarket trading after missing on both the top and bottom lines, reporting negative free cash flow for a second consecutive quarter while keeping its 2026 capital expenditure forecast at $220 billion, CNBC reports.

Alphabet closed 13% lower on Thursday — its worst single-day drop in history — after ballooning negative free cash flow, while Microsoft rose after staying cash flow positive. Chipmakers including Micron, Nvidia and Arm were also lower premarket, and European names like ASML saw sharp declines.

Nasdaq-100 futures were down 2% in early trading, putting the tech-heavy index on course for a negative week, according to CNBC.

The undercurrent is investor nervousness about whether massive AI spending from the tech giants will pay off — Amazon's second straight quarter of negative free cash flow and Alphabet's similar trajectory have sharpened that concern.

Still, Raymond James chief market strategist Matt Orton told CNBC's 'Squawk Box Europe' that this is 'not a moment of reckoning,' arguing fundamentals 'by and large still remain in place' across the AI capex beneficiary part of the market, and that he is 'generally okay' with companies turning free cash flow negative for a temporary period.

Even after the recent fall, the Nasdaq Composite remains up more than 12% year-to-date as of Thursday's close.