Intel's worst-ever stock drop hits global chip market

Intel's stock plunged 29% on Friday, heading for its worst daily drop ever, triggering a global selloff in chip stocks as investors grow wary of weak PC demand and massive AI infrastructure costs. The crash erased over $137 billion in market value. The decline hit major semiconductor firms, with AMD, Arm, Qualcomm, Nvidia, Broadcom, and Micron falling 2% to 10%, while server makers Dell, HPE, and Super Micro dropped 6% to 10%. Intel forecast Q4 revenue of $15-16 billion, below analysts' $17.07 billion estimate, and said it won't achieve positive cash flow this year. Memory price increases from suppliers shifting to AI chips are raising PC costs, with Intel's PC segment expected to fall over 20% quarter-over-quarter. CEO Lip-Bu Tan's turnaround plan faces mounting pressure amid the prolonged PC market slump.