Intel’s shares slumped 29% on Friday, wiping $12.3 billion off the U.S. government’s 10% stake, after the company warned that a factory shutdown in Israel and a weak PC market would dent this quarter’s earnings.
The chipmaker projected Q3 adjusted earnings per share of $0.25 on revenue of $15‑$16 billion, falling short of analysts’ consensus of $0.43 and a revenue target of $17.1 billion, according to the LSEG database.
Intel cited a 4% dip in global PC shipments and a $600 million loss from the Israel plant incident, which halted 10‑nanometre production, for the shortfall, CFO David Zinsner said in the earnings release.
Nasdaq Composite dipped 2.9% that day, with Alphabet and Amazon pulling back after mixed earnings, signalling growing caution among investors over AI‑driven demand and supply chain bottlenecks.
Intel’s board remains optimistic that its foundry line, now in high‑volume production of the 18A chip at Arizona’s new plant, will secure external customers in the next two quarters, and the company expects the next Arizona facility to open by the end of 2028, according to CEO Lip‑Bu Tan.