Intel (INTC) Plunges 28.6% on Q4 Guidance Far Below Estimates
Key Takeaways
- •Intel's stock fell 28.6% on Friday to close at $65.76, its worst single-day performance since the 1970s, on trading volume of roughly 450 million shares.
- •The plunge was triggered by fourth-quarter guidance that came in significantly below analyst forecasts.
- •The decline cut about $12 billion from the value of the US government's roughly 10% stake, which was formed in August 2025 by converting CHIPS Act funding commitments into equity.
- •CEO Lip-Bu Tan, who took over in March 2025, is leading a turnaround focused on cost reductions, a leaner structure, and restoring process-technology leadership.
- •Intel faces mounting pressure from Nvidia and AMD in AI and data center chips and from TSMC in advanced manufacturing, and its upcoming fourth-quarter results will be measured against the disappointing guidance.
Intel shares collapsed 28.6% on Friday, closing at $65.76 in what market data ranks as the chipmaker's worst single-day performance since the 1970s. Roughly 450 million shares changed hands during the session, and the plunge stripped about $12 billion from the value of the United States government's roughly 10% stake in the company.
The sell-off followed Intel's fourth-quarter guidance, which came in far below analyst estimates. Guidance — a company's own forecast for the revenue and profit it expects in an upcoming period — is the yardstick against which analysts and investors set their expectations for a stock.
Intel, headquartered in Santa Clara, California, is one of the world's largest semiconductor companies and the historical pioneer of the microprocessor. It designs and manufactures processors for personal computers and data centers, and in recent years has worked to rebuild its manufacturing competitiveness through its foundry business, which produces chips for other companies, and its 18A process technology, the cutting edge of that manufacturing push.
The US government's equity position dates to August 2025, when the federal government converted CHIPS Act funding commitments into a stake of roughly 10%, making Washington one of Intel's largest shareholders. The CHIPS Act is a federal program aimed at strengthening domestic semiconductor manufacturing and supply chains. That holding ties the value of the government's investment directly to the company's share price, which is why Friday's decline erased roughly $12 billion from the stake's value.
Lip-Bu Tan, who became Intel's chief executive in March 2025, has led a turnaround effort centered on cost cuts, a leaner organizational structure, and restoring process-technology leadership. Intel faces intensifying competition from Nvidia and AMD in artificial intelligence and data center chips, and from Taiwan Semiconductor Manufacturing Company (TSMC) in advanced manufacturing. When Intel reports fourth-quarter results, they will be measured against this guidance, offering a near-term checkpoint on how the turnaround is progressing.
This content was first published on COINOTAG.
