Intel stock has worst day since 1970s, wiping about $12 billion off government's stake
- Intel stock crashed around 28% on Friday, marking one of its worst days ever and reducing the value of The Trump administration's 10% stake by $12 billion, CNBC reports.
- Weaker-than-Expected fourth-quarter projections drove the selloff; Intel warned of revenue between $15 billion and $16 billion when analysts anticipated around $17 billion, with gross margins declining to 37% from 43%.
- Rising component prices and PC slowdowns are straining IT budgets, Intel CEO Lip-Bu Tan warned on the earnings call; data center revenue grew 78% despite capacity constraints in Arizona versus Taiwan Semiconductor Manufacturing.
- Despite Friday's decline, The Trump administration's investment remains profitable, with Intel stock up more than 70% Year-to-date; Nvidia, which also holds a stake, saw shares drop slightly.
- Investors remain nervous about massive AI spending from tech giants; Amazon and Alphabet closed lower on Thursday as these results dragged Nasdaq futures down 2% and capped a rough week for tech earnings.
54 Articles
54 Articles
Concerns of a "Black Monday" are spreading in the domestic stock market as U.S. semiconductor stocks plummet following Intel's earnings shock. Technology stocks across the board are declining due to doubts about the profitability of AI investments, while the domestic market is experiencing increased volatility due to a concentration in the semiconductor sector and the burden of outstanding margin trading balances.
A disappointing forecast and the shutdown of the Kiryat Gat plant dragged Intel to its worst trading day in 50 years • The sharp drop interrupted a string of strong reports and wiped out huge amounts of stock value from employees, investment funds and its largest shareholder - the US government
Intel stock plunges nearly 30%, its worst day in 52 years
Oddly enough, the quarter itself went well. Intel beat Wall Street's earnings estimates. Its data center revenue jumped nearly 80% from a year earlier to $7.3 billion, too. But its forecast for the last three months of the year landed well short: analysts had penciled in about $17 billion in...Read Entire Article
The US market is in a state of chaos. Intel shares plunged 28% on Friday, causing the Nasdaq to fall 2.86% and wiping out $1.8 trillion in losses.
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