Intel Shares Plunge 28% After Lowered Q4 Outlook, Cutting $12 B from U.S. Government Stake

Intel’s shares fell about 28% on Friday after the company cut its fourth‑quarter revenue forecast to $15‑$16 billion, below the $17 billion analysts expected, and warned that its gross‑profit margin would drop from 43% to 37%. The decline erased roughly $12 billion of value from the U.S. Treasury’s 10% stake in the company, acquired under the Trump administration. Despite the drop, Intel remains a profitable holding for the Treasury, having risen more than 70% year‑to‑date. The company cited a slowdown in PC sales driven by high memory prices and limited IT budgets, while its data‑center revenue grew 78% YoY. Intel is investing heavily in new fabs—one in Arizona is operational, but the next will not be online until 2028—and expects no positive cash flow until then.