Intel shares plummeted 28.58%, as the value of the U.S. government's holdings evaporated by approximately $12 billion in a single day.

According to data from the BIT Stock Platform, Intel closed down 28.58% on Friday, trading at $65.76, marking its worst single-day performance since the 1970s. The roughly 10% stake held by the U.S. government in Intel lost around $120 billion in value that day, though the investment remains profitable. Nvidia’s Intel stake also lost roughly $60 billion in value. Ahead of the earnings report, Intel’s stock had rallied around 150% year-to-date. On the earnings front, Intel projected fourth-quarter revenue of $15 billion to $16 billion, below the LSEG-consensus market estimate of $17.1 billion. Adjusted earnings per share were forecast at $0.25, missing the expected $0.43. Chief Financial Officer David Zinsner stated that the PC market slowdown will persist at least through the first half of 2027, with rising costs for memory and other components weighing on the industry. Additionally, an explosion at Intel’s Israeli wafer fab this month killed two people and critically injured one, forcing an extended shutdown that impacted shipments of 10-nanometer chips. Zinsner projected the accident would result in a total revenue loss of around $6 billion over two quarters. Foundry services remain a key part of Pat Gelsinger’s push to transform the company. Intel’s 18A chip has entered mass production at its new Arizona facility, though the new chip has no external customers yet. Gelsinger said two customers are expected to be announced over the next two quarters, and development of the 14A chip is also making significant progress. D.A. Davidson downgraded Intel’s rating from Buy to Neutral, noting that while the PC industry faces broad pressure, the weakness in its business has left current valuations unsustainable. Raymond James Chief Market Strategist Matt Orton argued that this is not a “moment of reckoning” for the AI sector, with fundamentals remaining strong, though investors need to reassess their still-crowded positions in the space.