Intel’s stock crashes, knocking $12B from government’s stake
Intel's stock price dropped 28% following a weak fourth-quarter outlook, resulting in a $12 billion loss in value for the U.S. government's investment stake. The company cited a slowdown in PC sales and intense competition as primary factors for the decline.
Why it matters
The significant drop highlights the volatility of the semiconductor market and the risks associated with government-backed investments in private tech firms.
Intel’s stock suffered one of its worst days ever on Friday, crashing around 28% after the chip giant reported a weaker-than-expected outlook for the fourth quarter.
This route reduced the value of Intel’s holdings by the government by $12 billion, CNBC reports . The Trump administration had the government buy 10% stake over a year ago. Nvidia, which also took a big stake in Intel in 2025, saw its stock drop a bit on Friday as well. Much of the tech industry — especially chipmakers — were caught in the selloff.
Intel’s stock is still a profitable investment for the government so far (and for Nvidia), as it’s up more than 70% for the year, even if its dropped significantly from the sky high prices it commanded over the summer.
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