Intel shares plunge 28% after weak Q4 outlook, shaving $12B off US government's stake
Intel's stock fell about 28% after the company gave a weak Q4 outlook (revenue $15–16B vs. ~ $17B expected), warned gross margin would drop to ~37% from 43%, and said heavy investments mean no positive cash flow; the decline trimmed roughly $12 billion from the value of the US government's roughly 10% stake. Intel said data-center revenue rose 78% year-over-year, but capacity constraints at its fabs (one Arizona fab online, next not expected until 2028) and AI-driven memory shortages and higher PC prices are weighing on PC demand.