Intel’s stock crashes, knocking $12B from government’s stake
Intel shares plunged about 28% after weak fourth-quarter guidance, cutting the value of the U.S. government’s stake by $12 billion.Summary
Intel’s stock fell roughly 28% on Friday after the chipmaker projected fourth-quarter revenue of $15 billion to $16 billion, below analysts’ expectations of about $17 billion. It also warned that gross margin would decline to 37% from 43% and that heavy investment would leave no positive cash flow. The drop reduced the value of the U.S. government’s 10% stake, acquired under the Trump administration, by $12 billion, though the investment remains profitable overall, with Intel shares up more than 70% for the year. Nvidia, which also holds a large stake, saw a modest decline as chipmakers broadly sold off. CEO Lip-Bu Tan said customers are signaling a PC slowdown because AI demand is consuming memory and other components and driving up PC prices. Intel’s data center revenue grew 78% year over year, but the company needs more fab capacity and external customers to compete with TSMC; one new Arizona fab is operating, but the next is not expected online until 2028.
(Source：TechCrunch)