GoKawiilIntel shares plunge 28% on weak Q4 forecast, cutting US stake value by $12B
Intel stock fell about 28% on Friday after the company projected fourth-quarter revenue of $15-16 billion, below analyst expectations of roughly $17 billion, and warned gross margins would drop to 37% from 43% with no positive cash flow expected. The decline cut roughly $12 billion from the value of the US government's 10% stake in Intel, acquired over a year ago, and also dented Nvidia's shares along with the wider chip sector.
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CEO Lip-Bu Tan attributed part of the weakness to rising PC prices driven by AI-related demand for memory components, squeezing corporate IT budgets and suggesting broader pressure across the PC supply chain. Despite the drop, the government's and Nvidia's stakes remain up more than 70% for the year, indicating the selloff has not erased earlier gains. Intel's growing data-center business could offer a path forward, but its ability to compete with TSMC depends on expanding fab capacity, with a key new facility not expected online until 2028.
- Intel's stock fell about 28% after a weak Q4 revenue and margin forecast.
- The US government's 10% stake in Intel lost roughly $12 billion in value, though it remains up over 70% for the year.
- Rising PC prices tied to AI-driven memory demand are pressuring Intel's core business, while its data-center unit grew 78% year-over-year.
Source: techcrunch.com — Julie Bort, 2026-10-30
Published there as: “Intel’s stock crashes, knocking $12B from government’s stake”
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