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Intel stock has worst day since 1970s, wiping about $12 billion off government's stake
The selloff followed Intel’s warning that fourth-quarter revenue would fall short of Wall Street estimates and that margins and cash flow would weaken.
- 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.
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33 Articles
33 Articles
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.
The fall of Intel also represents a severe blow to the Trump administration, which prompted the US government to acquire a 10% stake in the company more than a year ago
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Leaning Left0Leaning Right7Center7Last UpdatedBias Distribution50% Center, 50% Right
Bias Distribution
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