Topline
Intel’s stock plummeted by more than 16% Friday morning, its largest intraday decline in years, after the chipmaker signaled its manufacturing would be unable to meet full demand despite its latest earnings beating Wall Street’s expectations.
Intel’s stock has more than doubled over the last year with investments from the Trump administration, SoftBank and Nvidia.
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Key Facts
Shares of Intel plunged 16.2% to around $45.45 shortly after trading opened Friday, pacing the stock’s largest intraday decline since July 2020.
Intel on Thursday reported fourth-quarter revenue of $52.8 billion and earnings per share of $0.42, surpassing economists’ estimates of $52.6 billion and $0.34 per share, according to FactSet.
But the chipmaker said it expects first-quarter revenue between $11.7 billion and $12.7 billion, with earnings projected to break even, falling short of earlier estimates of $12.5 billion in revenue and $0.05 in earnings.
Intel CEO Lip-Bu Tan said during an earnings call Thursday the company was hampered by production not being “up to my standards” despite “quite strong” demand, adding the company was on a “multiyear journey” to turn the company around that would take “time and resolve.”
Bernstein analysts wrote that Intel “appears to have woefully misjudged” preparing for a rise in demand, writing the company was “caught massively off guard.”
Big Number
111.5%. That’s how much Intel shares have risen over the last year, despite Friday’s decline. The stock topped at a 52-week high of $54.60 on Thursday.
Tangent
Intel headlined losses across the tech-heavy Nasdaq, which rose slightly (0.4%) Friday. Shares of Broadcom (2.2%), Charter Communications (1.8%), Tesla (0.4%), Qualcomm (0.1%) and Marvell Technology (2.3%) also declined.
Key Background
Intel, whose shares fell to a five-year low in April 2025, marked a turnaround following investments from SoftBank, Nvidia and the Trump administration. President Donald Trump announced in August that Intel agreed to give the U.S. government a 10% stake in the company, after Trump earlier called Tan “highly CONFLICTED” and said Tan should resign “immediately.” Trump has since praised the U.S. investment in Intel and said the U.S. is a “proud shareholder,” claiming its stake earned Americans “tens of billions of dollars.” The federal government’s $8.9 billion stake is now worth about $20.4 billion.