Intel Stock Plummets 28% Amid Weak Q4 Outlook, Impacting Government Stake

• •Intel's stock fell 28% after a weak earnings forecast, impacting government investments.
• •The U.S. government lost $12 billion in value from its stake in Intel due to the stock crash.
• •Ongoing softness in the PC market and AI competition are major factors in Intel's struggles.

Intel's stock dropped approximately 28% on October 30, 2026, following a disappointing fourth-quarter revenue forecast of $15 billion to $16 billion, below analyst expectations of $17 billion. This decline resulted in a $12 billion loss in value for the U.S. government's 10% stake in the company, acquired under the Trump administration. The drop was attributed to a slowdown in PC sales, exacerbated by increased competition from the AI sector for memory and components. CEO Lip-Bu Tan noted that rising system endpoint prices are straining IT budgets. Although Intel's data center revenue grew 78% year-over-year, the company faces challenges in ramping up production capacity. Nvidia, which also invested in Intel, saw a $6 billion reduction in its stock value. The downturn is a significant setback for Intel, which had previously seen a 150% increase in stock value this year.