Intel’s stock suffered one of its worst days ever on Friday, crashing around 28% after the chip giant issued a weaker-than-expected outlook for the fourth quarter. The rout knocked $12 billion off the value of the US government’s 10% stake in Intel, according to CNBC.
Intel (Credits: TechCrunch)
Intel Stock Crash: Weak Q4 Outlook Spooks Wall Street
The selloff was triggered when Intel warned it expects fourth-quarter revenue of $15 billion to $16 billion, below the roughly $17 billion analysts were looking for. The company also guided gross profit margin down to 37% from 43%, and said heavy investment means it expects no positive cash flow.
The pain was not Intel’s alone. Nvidia, which also took a big stake in Intel in 2025, saw its shares dip, and much of the tech industry — chipmakers in particular — was caught in the broader selloff.
PC Slowdown and the AI Memory Squeeze
The core problem is a PC market being squeezed by the AI boom. AI data centers are gobbling up memory and other components, pushing PC prices higher and pressuring already-limited IT budgets. CEO Lip-Bu Tan told analysts: “Our customers began signaling a PC slowdown based on the memory prices and availability.”
There was a bright spot: Intel’s data center revenue grew 78% year-over-year. But the company remains hamstrung on that front until it brings more fab capacity online and books more external customers to compete with TSMC. One of Intel’s new Arizona fabs is operational, but the next is not expected online until 2028.
Despite the crash, the government’s Intel bet remains in the green — the stock is still up more than 70% for the year, and Nvidia’s stake is also still profitable, even after Friday’s drop from the sky-high prices Intel commanded over the summer.
The administration bought its 10% stake over a year ago, and Intel’s summer rally pushed the stock to sky-high valuations that made the government’s position one of the market’s most-watched holdings. Nvidia’s parallel investment added to the narrative of a strategic chip buildup in the United States, making Friday’s coordinated selloff a stress test for both bets.
Also Read: AMD Stock Slides After Intel Earnings Reveal AI Chip Shortages and Weak PC Market | Intel Plunges 23% as AI Spending Fears Hit Tech Stocks
Source: TechCrunch — read the full story there.