Intel shares plunge 29% in worst day since 1974
Intel shares fell 29% after weak guidance tied to an Israeli plant shutdown and a struggling PC market.
Intel issued surprisingly weak earnings guidance on Friday, sending shares into freefall on fears the chipmaker remains in trouble despite a 150% rally earlier this year. The plunge was the stock's worst day since 1974.
CEO Lip-Bu Tan, hired in March 2025 to turn the company around, faces fresh headwinds from a damaged fab in Israel and persistent weakness in personal computers. An explosion at the Israeli plant this month will cost Intel about $600 million in lost revenue over two quarters and knocked out production of advanced 10-nanometre chips.
The PC market is slowing as memory costs soar, a problem affecting the entire chip industry. Analysts at D.A.
Davidson downgraded the stock to neutral, citing struggles that justify lower valuations. The collapse wiped roughly about $12 billion from the Trump administration's 10% stake in the company.
- 29% on Friday, worst day since 1974
- Share price drop
- Lip-Bu Tan hired March 2025
- CEO hire date
- Shares were up 150% before Friday's plunge
- Year-to-date gains wiped
Why it mattersA market loss this large signals investor doubt about whether Intel can catch up in the AI chip race and stabilise its core business.
AustraliaNo direct Australian effect yet, but Australian tech investors and super funds holding Intel have taken significant losses.
✓ Claims checked against the source. checked 3 h ago
