Huo Xing Finance reports that, on October 31, according to data from the BIT stock platform, Intel closed down 28.58% at $65.76 on Friday, marking its worst single-day performance since the 1970s. The U.S. government’s approximately 10% stake in Intel lost about $12 billion in value that day, though the investment remains profitable. NVIDIA’s stake in Intel also declined by approximately $6 billion. Prior to this earnings report, Intel’s stock had risen about 150% year-to-date. For guidance, Intel forecast fourth-quarter revenue of $15 billion to $16 billion, below the LSEG consensus estimate of $17.1 billion; adjusted earnings per share are expected at $0.25, below the anticipated $0.43. Chief Financial Officer David Zinsner stated that the slowdown in the PC market is expected to persist at least through the first half of 2027, with rising costs for memory and other components pressuring the industry. Additionally, Intel’s wafer fabrication facility in Israel experienced an explosion this month, resulting in two deaths and one serious injury, and causing prolonged production downtime that impacted 10-nanometer chip shipments. Zinsner estimated the incident will result in a combined revenue loss of approximately $600 million over two quarters. Foundry services remain central to Chen Lihwu’s efforts to transform the company. Intel’s 18A chips have entered mass production at its new factory in Arizona, but the new chips currently have no external customers. Chen Lihwu stated that two external customers are expected to be announced over the next two quarters, and significant progress is being made in the development of the 14A chip. D.A. Davidson downgraded Intel’s rating from Buy to Neutral, stating that although the PC market faces industry-wide headwinds, the severity of business weakness makes the current valuation unsustainable. Raymond James Chief Market Strategist Matt Orton, however, believes this is not a “reckoning moment” for the AI industry—fundamentals remain strong—but investors need to reassess their still-overweight positions in this sector.
Intel shares drop 28.58% as U.S. government stake loses $12 billion in a single day
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Summary
Intel shares fell 28.58% on October 31, 2026, closing at $65.76, marking its worst single-day decline since the 1970s. The U.S. government’s 10% stake lost $12 billion in value, though the investment remains profitable. A weak market outlook pushed the Fear & Greed Index toward extreme fear. Intel forecast Q4 revenue at $15–16 billion, below the $17.1 billion expectation. The company cited rising component costs and a PC market slowdown anticipated through mid-2027.
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