Intel Stock Falls 28%, Wiping $12 Billion From U.S. Stake

Intel's stock fell roughly 28% on Friday, one of the company's worst trading days ever, after the chipmaker issued a fourth-quarter revenue outlook well below Wall Street estimates, according to TechCrunch. The drop cut about $12 billion from the value of the federal government's 10% stake in Intel, TechCrunch reported, citing CNBC.

Why did Intel's stock drop 28% on Friday?

Intel told investors to expect fourth-quarter revenue of $15 billion to $16 billion, below analyst expectations of roughly $17 billion, TechCrunch reported. The company also said gross profit margin would decline to 37% from 43%, and that heavy capital investment means it expects no positive cash flow for the quarter. The sell-off spread across chipmakers broadly, with Nvidia's stock also falling, per the report.

How much value did the government's Intel stake lose?

The Trump administration took a 10% stake in Intel more than a year ago, according to TechCrunch. Friday's crash knocked an estimated $12 billion off that holding's value. Even with the drop, the stake remains up more than 70% for the year, though it has pulled back sharply from highs reached over the summer, TechCrunch reported. Nvidia, which also acquired a stake in Intel in 2025, has seen that investment's value move with the same swings.

What's driving higher PC prices?

Intel's core problem is that the AI industry's demand for memory and other components is pushing PC prices up and slowing PC sales, according to TechCrunch. Intel CEO Lip-Bu Tan told investors on the earnings call: "Our customers began signaling a PC slowdown based on the memory prices and availability. Year-to-date system endpoint prices have increased significantly, placing additional pressure on already limited IT budgets."

How did Intel's data center business perform?

Not every part of Intel's business is slowing. Revenue from its data center unit grew 78% from the year-ago quarter, TechCrunch reported. But the company said that growth is constrained until it can add more manufacturing capacity and sign more external foundry customers, putting it in direct competition with Taiwan Semiconductor Manufacturing Co., the industry's dominant contract chipmaker.

When will Intel's new fabs be ready?

One new Intel fab in Arizona is already operational, according to TechCrunch, but the next facility in the pipeline is not expected to come online until 2028. That timeline means Intel's capacity to chase external foundry business — and offset softening PC demand — will stay limited for at least another two years.

By the numbers

• Stock decline: approximately 28% on Friday, Oct. 30
• Government stake value lost: about $12 billion
• Q4 revenue guidance: $15 billion–$16 billion, versus analyst estimates near $17 billion
• Expected gross margin: 37%, down from 43%
• Data center revenue growth: 78% year-over-year
• Government stake still up: more than 70% for the year despite the drop

Intel's next earnings report will show whether the memory-price squeeze on PC buyers eases or deepens, and whether the Arizona fab and new external customers can narrow the gap with TSMC before 2028.