Intel shares tumble 29% after weak guidance, erasing $12 billion of U.S. stake

Intel's shares dropped 29% on Friday, marking the chipmaker's steepest one‑day loss since the 1970s and wiping roughly $12 billion off the value of the U.S. government's 10% stake, CNBC reported.

What triggered the sharp slide in Intel's stock?

The plunge followed weaker‑than‑expected quarterly guidance that cited a shutdown at its Israeli fabrication plant and continued softness in the personal‑computer market, according to CNBC. The guidance also reflects the impact of an explosion at the Israel fab that killed two workers, injured a third and is expected to cost about $600 million in lost revenue over two quarters.

How did the decline affect the U.S. government's investment?

The government’s 10% holding lost about $12 billion in market value after the share drop, CNBC said. While the stake remains profitable overall, the sudden loss underscores the risk of the public investment.

What are Intel's latest earnings expectations?

Intel forecast adjusted earnings of $0.25 per share on revenue between $15 billion and $16 billion for the current quarter, falling short of analysts' expectations of $0.43 EPS and $17.1 billion revenue, CNBC reported. In response, D.A. Davidson downgraded the stock to neutral from buy in a report titled "Not fixed yet."