Intel plunges 28.58%, with the U.S. government's stake value evaporating by approximately $12 billion in a single day.

BlockBeats news, October 31 — According to data from the BIT stock platform, Intel closed down 28.58% on Friday at $65.76, marking its worst single-day performance since the 1970s. The U.S. government's approximately 10% stake in Intel shrank in value by about $12 billion that day, though the investment remains in profit. The value of Nvidia's stake in Intel also shrank by about $6 billion. Prior to this earnings release, Intel's stock had risen about 150% year-to-date.

On guidance, Intel expects fourth-quarter revenue of $15 billion to $16 billion, below the LSEG consensus of $17.1 billion; adjusted earnings per share are expected at $0.25, below the expected $0.43. Chief Financial Officer David Zinsner said the PC market slowdown will last at least through the first half of 2027, with rising memory and other component costs putting pressure on the industry.

In addition, an explosion this month at Intel's fab in Israel killed two people and seriously injured one, causing a prolonged production halt and affecting 10-nanometer chip shipments. Zinsner expects the incident to cause a total revenue loss of about $600 million over two quarters.

The foundry business remains key to Lip-Bu Tan's push to transform the company. Intel's 18A chips have entered mass production at its new Arizona fab, but the new chips have no external customers yet. Tan said two customers are expected to be announced over the next two quarters, and development of the 14A chip is making significant progress.

D.A. Davidson downgraded Intel from Buy to Neutral, arguing that despite industry-wide pressure on the PC market, the weakness in the business has made the current valuation difficult to support. Raymond James chief market strategist Matt Orton said this is not a "reckoning moment" for the AI industry, fundamentals remain strong, but investors need to re-examine the still-crowded positioning in the sector.