Intel’s stock crashes, knocking $12B from government’s stake

Intel shares fell about 28% on Friday after the chipmaker guided fourth-quarter revenue to $15–16 billion versus roughly $17 billion expected by analysts, cutting the value of the government's 10% stake by $12 billion, CNBC reported. Intel also warned gross margin would fall to 37% from 43% and that heavy investment meant no positive cash flow, citing a PC slowdown as AI demand drives up memory prices. Data center revenue grew 78% year over year, but Intel remains capacity-constrained until more fabs come online, with the next Arizona fab not expected until 2028.