Intel Shares Plunge 28%, Erasing $12 Billion from Government Stake

Intel’s share price dropped roughly 28 % on Friday after the company forecast fourth‑quarter revenue of $15‑16 billion, well below the $17 billion analysts expected. The warning also included a projected gross‑margin decline to 37 % from 43 % and a statement that heavy capital spending will keep cash flow negative for the near term.

The U.S. government, which acquired a 10 % stake more than a year ago, saw the value of that holding shrink by about $12 billion in a single session. Nvidia, another major Intel shareholder, also experienced a modest dip, while the wider semiconductor index sold off.

Why it matters for GPU / AI infrastructure

Intel’s data‑center revenue grew 78 % year‑over‑year, but the firm remains capacity‑constrained as new fabs in Arizona will not come online until 2028. Until additional wafer supply materializes, AI‑focused GPU buyers may face tighter availability and higher pricing for complementary components such as memory and interconnects.

CEO Lip‑Bu Tan noted that rising memory costs and limited IT budgets are already slowing PC demand, a trend that could spill over to AI workload procurement if component shortages persist.