Intel stock has worst day since 1970s, wiping about $12 billion off government's stake
The chipmaker warned fourth-quarter revenue would miss estimates by about $2 billion, and analysts said PC weakness and a fab shutdown pressured margins.
- 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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79 Articles
Trump’s bad week gets 'worse' as his taxpayer-funded gamble loses billions
On Thursday, a steep selloff of tech stocks had the financial wizards at Barron’s declaring that President Donald Trump’s “bad week is getting worse.” This is because the tech stock slump included Intel, in which the government had bought a 10 percent stake at Trump’s behest last summer. Intel’s stock has fallen sharply as of late, however, losing half its value in a matter of weeks.As Barron’s explains, the bulk of that 50 percent plunge came l…
Intel Stock Suffers Worst Daily Decline Since 1970s, Government Stake Loses $12 Billion
Intel Corp. shares plummeted about 29% on Friday, the chipmaker's worst single-day decline since the 1970s, after the company issued weaker-than-expected guidance citing a factory shutdown in Israel and ongoing softness in the personal computer market, according to CNBC. [1]. Trading volume exceeded 150 million shares, more than triple the daily average, according to market data. Intel's plunge came as Amazon and other technology companies repor…
Global semiconductor investor sentiment is wavering as Intel's stock price plummets nearly 30% in a single day. Questions are mounting as to whether Big Tech companies, which are pouring massive amounts of money into AI infrastructure such as data centers, can actually reap returns commensurate with their investment.
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