Intel stock crash wipes $12B from US government stake

Intel's stock crashed approximately 28% on Friday after the company reported a weaker-than-expected fourth-quarter outlook, wiping $12 billion from the value of the U.S. government's 10% stake. The selloff was triggered by Intel's forecast of $15-16 billion in fourth-quarter revenue, below analysts' expectations of around $17 billion, alongside a projected gross margin decline to 37% from 43% and no positive cash flow. CEO Lip-Bu Tan cited a PC slowdown driven by AI industry demand for memory and components, which has raised PC prices and strained IT budgets. Intel's data center revenue grew 78% year-over-year, but capacity constraints at its fabs, with a new Arizona plant operational and another not due until 2028, limit its ability to compete with Taiwan Semiconductor Manufacturing Co. Despite the crash, Intel's stock remains up over 70% for the year, keeping the government's investment profitable. Nvidia, which took a large stake in Intel in 2025, also saw its shares dip, as the broader chipmaking sector was caught in the selloff.