Wire flash
Intel shares plunge nearly 30% Friday, shaving over $11 billion off US government's stake
Editorial responsibility
- No named human review is recorded for this page.
- Source reporting is collected, normalized, translated or condensed automatically when needed.
- Automatically published source-backed update
Intel shares fell nearly 30% on Friday, closing at $65.76, after the company's fourth-quarter revenue outlook of $15-16 billion fell short of the $17 billion analysts expected and PC revenue dropped more than anticipated. The decline shaved over $11 billion from the US government's 9.9% equity stake, acquired last August at $20.47 per share (433.3 million shares worth about $8.9 billion). The stake was worth roughly $39.9 billion at Thursday's $92.07 close and about $28.5 billion after Friday's rout, still more than three times the government's purchase price. Intel erased nearly $150 billion in market value at points during the session, briefly putting it on pace for its worst day since 1974. The episode highlights volatility in the Trump administration's growing portfolio of government equity holdings, which spans 40 companies per a CATO Institute tracker.
Source report
Ben Werschkul, Washington Correspondent Fri, October 30, 2026 at 1:33 PM PDT — 2 min read
INTC -28.58%
The share price of Intel dropped almost 30% on Friday, shaving over $11 billion from the US government's stake in the company, though the transaction remains profitable overall.
Background on the Government's Stake
Last August, the Trump administration took a 9.9% equity stake in the chipmaker at a price of $20.47 per share, according to a company press release at the time.
That initial stake of 433.3 million primary shares was worth about $8.9 billion. The value shot up dramatically earlier this year, with Intel (INTC) closing on Thursday at $92.07 per share, implying a value to the US government of $39.9 billion.
Friday's Plunge
But the stock took a beating on Friday after the company reported earnings on Thursday night. The stock closed Friday down about 29% at $65.76 per share, suggesting a new paper value for the government's stake of $28.5 billion.
(INTC)
Go deeper with AlphaSpace
- 65.76 (-26.31, -28.58%) — At close: October 30 at 4:00:01 PM EDT
- 64.89 (-0.87, -1.32%) — After hours: October 30 at 7:59:56 PM EDT
The rapid price change underscores how government investments can take investors on a wild ride and presents a new challenge to a centerpiece of Trump's government portfolio, which now spans 40 companies, according to a CATO Institute tracker.
A Nearly $150 Billion Loss for the Company
Investors punished Intel after its Q4 revenue outlook fell short of Wall Street expectations and the company reported a worse-than-anticipated drop in PC revenue.
Intel is projecting fourth quarter revenue of $15 billion to $16 billion, well below the $17 billion analysts expected. The company is projecting earnings per share of $0.25 versus forecasts of $0.43.
That change in outlook led to losses that, at some points on Friday morning, put Intel on pace for its worst losses since 1974, as the company as a whole erased nearly $150 billion in market value.
The logo for the Intel Corporation is seen outside a microprocessor manufacturing site in Chandler, Arizona. (REUTERS/Nathan Frandino) · REUTERS / REUTERS
Political Context
The government's investment in Intel — which Trump has promised will yield outsized returns for taxpayers — is a running theme from the White House. In September, an image on Truth Social depicted the president as a stock trader in the Oval Office, with Intel's price displayed on a screen at $95 per share.
Trump has previously exaggerated the gains, suggesting at one point, "I've made Hundreds of Billions of Dollars on Stocks, and many other type Holdings, for the U.S.A., not myself."
Even so, the investment in Intel remains very profitable and still ended the day on Friday more than three times what the US paid for it.
This story has been updated.
Ben Werschkul is a Washington correspondent for Yahoo Finance.
Source
"site:finance.yahoo.com" - Google NewsWestern
Part of this Story
Intel shares plunge nearly 29% as weak Q4 outlook cuts US stake by $11 billion