Intel shares fall about 28%, cutting $12B from US stake
Original title: Intel’s stock crashes, knocking $12B from government’s stake
Intel guided fourth-quarter revenue of $15 billion to $16 billion, below about $17 billion expected, and a 37% margin.
Intel’s stock fell about 28% on Friday after a weaker fourth-quarter outlook, cutting about $12 billion from the value of the US government’s holdings, CNBC reported. The administration bought a 10% stake more than a year ago, and Nvidia also invested in 2025. Intel remains up more than 70% for the year. CEO Lip-Bu Tan linked weaker PC demand to higher memory prices as AI buyers absorb components, while data-center revenue grew 78% year over year.
Unconfirmed: The $12 billion reduction is reported via CNBC, not restated from an Intel filing.
- Gross margin is expected to fall to 37% from 43%, with no positive cash flow.
- One Arizona fab is operating; the next is not expected online until 2028.
- Intel still needs more foundry capacity and external customers versus TSMC.
- Countries
- United States
From the original article
2 min read at techcrunch.com
Intel is being hurt by PC sales as the AI industry gobbles memory and other components causing PC prices to rise.
By Julie Bort · techcrunch.com
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