Intel shares post worst drop since 1974 after Israel plant shutdown and weak forecast

Intel shares fell 28.58% on Friday to $65.76, marking their worst day since 1974, after a weak forecast tied to an Israeli plant shutdown and PC market slowdown erased about $12 billion from the US government's stake. The decline followed an explosion at Intel's Israeli fabrication plant that killed two workers, causing an extended shutdown and roughly $600 million in lost revenue over two quarters. The company forecast current-quarter revenue of $15-16 billion, below analysts' $17.1 billion expectation, with adjusted earnings of 25 cents per share versus 43 cents expected. The sell-off also cut Nvidia's Intel stake by about $6 billion and set back CEO Lip-Bu Tan's turnaround effort, though the US investment remains profitable. Intel's foundry business has no external customers yet for its new 18A chips, though Tan said announcements are expected within two quarters.