Intel shares crash 29% in worst stock market day since 1974
Intel has suffered its worst single-day stock market decline in more than 50 years, with its shares plunging approximately 29% on Friday, October 30, wiping nearly $12 billion off the value of the US government's investment in the company. The collapse came just a day after Intel released its third-quarter financial results and issued a disappointing forecast for the final three months of 2026.
Intel shares closed at $65.76, down from $92.07 the previous day. According to Yahoo Finance calculations using historical market data, the decline was the company's worst since July 5, 1974, when its stock fell approximately 30%.
The sell-off also erased nearly $150 billion from Intel's market capitalisation, making it one of the biggest single-day losses for a US technology company.
A $12 billion setback for Washington
The decline has also hit the US government, which became one of Intel's largest shareholders after acquiring a 9.9% stake in August 2025. The Trump administration purchased approximately 433 million Intel shares at $20.47 each, using funds associated with previously awarded government grants under the CHIPS and Science Act.
Before Friday's collapse, the government's investment was worth approximately $39.9 billion. Following the decline, its value fell to roughly $28.5 billion, representing a paper loss of approximately $11.4 billion in a single trading session.
Despite the setback, the investment remains profitable. The government's original stake cost approximately $8.9 billion, meaning it is still worth more than three times its purchase price.
What went wrong?
Intel's latest quarterly results were not entirely disappointing. The company actually beat analysts' expectations, reporting adjusted earnings of 52 cents per share. Its data centre business also delivered strong growth, with revenue increasing approximately 78% year-over-year to $7.3 billion.
The problem was its outlook.
Intel expects fourth-quarter revenue between $15 billion and $16 billion, significantly below the approximately $17 billion analysts had anticipated. It also forecast adjusted earnings of 25 cents per share, compared with Wall Street expectations of 43 cents.
The company additionally warned that it does not expect to generate positive cash flow for the remainder of the year.
Much of the pressure comes from a struggling PC market, where rising memory prices are making computers more expensive. AI data centres are consuming enormous quantities of memory chips, leaving less supply available for traditional consumer electronics.
Intel also suffered a manufacturing disruption following an accident at its facility in Israel, further complicating its ability to meet demand.
