Intel stock plunges, knocking $12B off government's stake

Intel’s stock plunged today, wiping about $12 billion off the government’s stake, TechCrunch reports. The drop underscores how resurgent AI spending is absorbing key components and manufacturing capacity, pushing up costs and squeezing PC makers that power Intel’s core business. With PC prices rising and shipments pressured across major markets, investors fear slower unit demand and thinner margins in coming quarters as costs bite and inventories reset.

The selloff adds pressure to Intel as it invests heavily in foundry expansion and chases AI server opportunities, even as near-term PC revenue softens. Traders are watching for any update to revenue guidance, supply outlook for memory and boards, and the impact on government-linked holdings as valuations swing and volatility rises. Watch for management response, component supply signals from AI leaders, and whether the stock stabilizes into the close. [Developing. This article will be updated.]