Intel's 30% Plunge Triggers Global Chip Selloff on Weak PC Demand

Intel's stock plunged nearly 30% on Friday, heading for its sharpest one-day decline and triggering a global selloff in chip stocks, as investors grew wary of weakening PC demand and massive AI infrastructure spending. The fall is set to erase over $137 billion in market value. The company forecast fourth-quarter revenue of $15-16 billion, below the $17.07 billion analysts expected, and its finance chief said positive cash flow is not expected this year. PC chips, roughly half of Intel's third-quarter revenue, are projected to decline over 20% sequentially, with higher memory prices raising costs and dampening consumer demand. The rout spread across the sector, with AMD, Arm, Qualcomm, Nvidia, Broadcom, and Micron falling 2-10%, and server makers Dell, HPE, and Super Micro down 6-10%. Europe's tech index dropped 2%, while TSMC shares fell 3.3%.