Intel shares fall 28% on weak fourth-quarter outlook
The decline trimmed $12 billion from the value of the US government's stake in the chipmaker, according to TechCrunch.
Intel shares fell about 28% on Friday after the chipmaker issued a weaker-than-expected fourth-quarter outlook, according to TechCrunch. The drop cut the value of the US government's Intel stake by $12 billion.
Intel guided fourth-quarter revenue to $15 billion to $16 billion, below analysts' expectation of around $17 billion. The company also said its gross profit margin would decline to 37% from 43%, and that heavy investment meant it expected no positive cash flow.
CEO Lip-Bu Tan said customers had signaled a PC slowdown tied to memory prices and availability. The weak client outlook came even as Intel's data center revenue grew 78% year over year.
On manufacturing, one of Intel's new Arizona fabs is operational, but the next is not expected online until 2028.
Government stake loses value
The Trump administration had the government buy a 10% stake in Intel over a year ago, and Nvidia took a big stake in the company in 2025. Despite Friday's slide, Intel stock is still up more than 70% for the year.
Quick answers
How much did Intel shares fall?
Intel shares fell about 28% on Friday after the company's weaker-than-expected fourth-quarter outlook.
What guidance did Intel give for the fourth quarter?
Intel guided fourth-quarter revenue to $15 billion to $16 billion, below analysts' expectation of around $17 billion, with gross margin declining to 37% from 43%.