Intel shares fall about 28% after weak fourth-quarter outlook
TechCrunch reports Intel stock dropped roughly 28% Friday after guidance of $15–16 billion in fourth-quarter revenue and a margin decline, cutting the government stake's value by $12 billion.
What you need to know
Intel shares fell about 28% on Friday after the chipmaker guided fourth-quarter revenue to $15–16 billion, below analysts' roughly $17 billion expectation, TechCrunch reported. The drop cut $12 billion from the value of the U.S. government's 10% stake, though the position remains up more than 70% for the year.
- Intel guided fourth-quarter revenue to $15–16 billion versus roughly $17 billion expected by analysts.
- The company warned gross margin would fall to 37% from 43% and that it expected no positive cash flow.
- CNBC, cited by TechCrunch, reported the sell-off reduced the government's 10% stake value by $12 billion.
- CEO Lip-Bu Tan cited a PC slowdown tied to memory prices and component availability amid AI demand.
- Data center revenue grew 78% year over year, and chipmakers broadly sold off.
Guidance drives the sell-off
Intel shares fell around 28% on Friday, one of the company's worst trading days, after it issued a fourth-quarter outlook below analyst expectations, TechCrunch reported. The chipmaker guided revenue of $15 billion to $16 billion, while analysts were looking for about $17 billion.
Intel also warned that gross profit margin would decline to 37% from 43% and that heavy investment meant it expected no positive cash flow. Nvidia, which took a large stake in Intel in 2025, saw its stock drop slightly, and chipmakers broadly were caught in the sell-off.
Government stake and PC pressures
The rout reduced the value of the U.S. government's 10% stake by $12 billion, according to CNBC as cited by TechCrunch. The government bought the stake more than a year earlier, and the position remains up more than 70% for the year despite falling from summer highs.
CEO Lip-Bu Tan said customers had signaled a PC slowdown based on memory prices and availability, with system endpoint prices rising and pressuring limited IT budgets. Data center revenue grew 78% over the year-ago quarter, but TechCrunch reported Intel is constrained until it adds fab capacity and external customers, with one new Arizona fab operational and the next not expected online until 2028.
How much did Intel's stock drop and what did it guide for fourth-quarter revenue?
TechCrunch reported Intel shares fell about 28% on Friday after the company guided fourth-quarter revenue to $15–16 billion, below the roughly $17 billion analysts expected, and warned of lower gross margin.
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