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Intel Corp. shares plummeted on Friday to the lowest level since January after the chipmaker reported third-quarter results and detailed a spending plan that it said would pressure profitability over the next few years.

The stock dropped as much as 12%, its biggest intraday percentage decline since July 2020, and this is set to be the sixth straight quarter where Intel's results were met with a negative reaction. The decline erased more than $20 billion in market value, according to data compiled by Bloomberg, resulting in a market capitalization of about $203 billion. For the first time, Intel is smaller than Broadcom Inc., which has a market valuation above $214 billion.

The weakness in Intel's stock appeared contained. The Philadelphia Stock Exchange Semiconductor Index rose 0.2% on Friday, with some names expected to benefit from Intel's spending plans. Semiconductor capital equipment stocks were especially strong, with Applied Materials up 4.4%, Lam Research gaining 2.8% and KLA Corp. surging 5.2%.

Applied Materials gets about 8.8% of its revenue from Intel, according to supply-chain data compiled by Bloomberg, while Lam gets a little more than 8% and KLA derives about 7.8%.

Advanced Micro Devices, considered a primary rival to Intel, rose 0.6%.

At least four Intel analysts downgraded the stock after the report. Mizuho Securities cut its view to neutral, writing that the "capital-intensive Foundry shift adds uncertainty to its likelihood of catching up to leading-edge by executing on its core PC/Server roadmap." Morgan Stanley cut the stock to equal weight, as the capital spending plan "requires underwriting a growth forecast that seems challenging."

The consensus rating for the stock - a proxy for its ratio of buy, hold, and sell ratings - stands at 3.30 out of five, down from 3.43 over the weekend, according to data compiled by Bloomberg. The average price target is $57, compared with $63 on Sunday. The current average points to upside of nearly 15%.