Intel Stock Crashes 28% (Uncle Sam Just Lost $12 Billion)

Intel stock fell about 28% on October 30, 2026 after a weak Q4 forecast, cutting the value of the US government's 10% stake by about $12 billion.

Intel workers in white cleanroom suits walking through a chip factory

Most people lose money in the stock market quietly. The US government just lost $12 billion in a single day, and the whole world watched.

The reason is the Intel stock crash. On Friday, October 30, 2026, shares of the American chip giant fell about 28%, one of the worst days in the company's history.

It started the evening before. On October 29, Intel reported its third quarter: $16.5 billion in revenue, up 21% from a year earlier. Fine so far.

Then came the forecast. Intel says it expects $15 billion to $16 billion for the fourth quarter. Analysts were hoping for around $17 billion.

One missing billion, and investors ran for the exit like it was the last train home.

Now the spicy part. In 2025, the Trump administration bought a 10% stake in Intel. After Friday's drop, that stake is worth about $12 billion less, according to reports.

So the government is officially an Intel shareholder. And like every shareholder this weekend, it's probably refreshing the stock app, hoping it was a glitch.

Why did it happen? Mostly AI. Data centers are buying up memory, so memory got expensive, so PCs got expensive, so people stopped buying PCs. Intel's PC chip business fell 5% to $8.1 billion, and Intel CFO David Zinsner expects the PC slowdown to last at least through the first half of 2027.

The funny part is that AI is also Intel's best customer. Data center and AI revenue jumped 78% to $7.3 billion. The same boom that feeds one half of the company is starving the other.

Intel also warned that its gross margin will drop to 37% from 43%. And part of the weak forecast comes from a tragic explosion at its factory in Israel this month, which killed two workers and will cost about $600 million in lost revenue over two quarters.

But careful: this is not a disaster for the government yet. Intel stock is still up more than 70% this year, so on paper the stake is still in profit. Just a lot less profit than on Thursday.

Personally, I think Intel's problem is simple. It makes good chips for a world that suddenly prefers to spend its money on AI servers instead of laptops.

Welcome to owning stocks, Washington. Nobody warns you about Fridays.

Photo: Intel Corporation

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