Intel shares plunge 28%, wiping $12 billion from government stake

What's Happening

• Intel shares dropped 28% on Friday after the company issued a weaker fourth-quarter forecast, Business Insider reported.
• The crash erased $12 billion from the value of the US government's 10% stake in the company, TechCrunch reported.
• The chipmaker projects fourth-quarter revenue between $15 billion and $16 billion, alongside a drop in earnings per share to $0.25.
• Intel's client-computing group generated $8.1 billion in the third quarter and expects a revenue decline exceeding 20% in the fourth quarter.

Why It Matters

The artificial intelligence boom cannibalizes the broader computing market. Surging demand for AI server chips creates memory shortages, driving up component costs for standard PCs. Computer manufacturers respond by ordering fewer traditional processors, hitting Intel's core business.