# Intel’s 28.58% Drop Cuts Federal Stake Value by $12 Billion

By John Kim

Canonical URL: https://www.tokenpost.com/news/business/45419
Published: 2026-10-31T10:05:14.000Z
Updated: 2026-10-31T10:05:14.000Z
Section: Business

> The stock closed at $65.76 after Intel projected fourth-quarter revenue and adjusted earnings below market expectations.

Intel shares plunged 28.58% Friday, shrinking the market value of the U.S. government's roughly 10% Intel holding by about $12 billion as the company's fourth-quarter outlook missed market expectations.

The stock closed at $65.76, its steepest one-day decline since the 1970s. The government's investment remained profitable despite the drop. Nvidia's Intel holding lost about $6 billion in value.

Intel projected fourth-quarter revenue of $15 billion to $16 billion, below the $17.1 billion market expectation. Its adjusted earnings-per-share forecast of 25 cents also trailed the 43-cent expectation.

Intel Chief Financial Officer David Zinsner said the PC market slowdown could persist through at least the first half of 2027, while higher memory and other component costs were pressuring the industry. A blast at Intel's Israel plant this month killed two people and seriously injured one. Zinsner estimated the shutdown and related disruption would reduce revenue by about $600 million over two quarters, affecting 10-nanometer chip shipments.

Intel shares had climbed about 150% this year before the earnings release.