Intel Shares Plunge 28% on Weak Guidance, Erasing $12 Billion From U.S. Government Stake

Intel shares fell about 28% on Friday, one of the chipmaker's worst single-day declines, after it guided fourth-quarter revenue to $15 billion-$16 billion versus analyst estimates of roughly $17 billion. The drop cut the value of the U.S. government's 10% stake by $12 billion, CNBC reported. Intel also warned gross margin would fall to 37% from 43% and that heavy investment would leave no positive cash flow. CEO Lip-Bu Tan said customers are signaling a PC slowdown as AI demand absorbs memory and component supply, driving up system prices and straining IT budgets. The selloff spread across chipmakers; Nvidia, which took a large stake in Intel in 2025, also slipped. Intel's stock remains up more than 70% this year, keeping the government's and Nvidia's positions profitable. Data center revenue rose 78% year over year, but Intel needs added fab capacity—its next Arizona plant is not expected online until 2028—to compete with Taiwan Semiconductor Manufacturing Co.