Intel’s stock fell 29% in a day: Explosion in Israel plant and slowdown in PC market became the reason, loss to Trump government

Shares of global chipmaker company Intel fell by 29% on Friday. This is the biggest decline in a single day for the company since the 1970s. The company’s shares have come down to $66. Due to expectations of weak results for the current quarter i.e. Q4, investors have made huge sales in Intel shares.

The company has cited the production stoppage due to an accident at its manufacturing plant in Israel and the ongoing slowdown in the personal computer (PC) market as the main reasons behind this decline.

Billions of dollars loss to Trump government and Nvidia

This fall in Intel’s shares has caused huge losses to the US government and chip company Nvidia. The Trump administration took a 10% stake in Intel more than a year ago. Friday’s fall has reduced the value of government holdings by about $12 billion, or about ₹1 lakh crore, although the government’s investments still remain profitable. At the same time, Nvidia, which has a large stake in Intel, has also suffered a loss of about $6 billion in its holding.

$600 million revenue loss due to Israel fab blast

The accident at its fabrication unit (Fab) in Israel is a major reason behind Intel’s weak results and guidance. Earlier this month, an explosion at an Israel plant killed two workers and seriously injured another.

CEO Lip-Bu Tan called it an “unfortunate and tragic accident” and said the blast forced a long-term shutdown at the plant, affecting supplies of Intel’s 10-nanometer chips. According to the company’s Chief Financial Officer (CFO) David Zinsner, due to this incident the company will lose revenue of about $600 million (about ₹5,000 crore) in two quarters.

Slowdown in PC market, impact on Q4 estimates

The company’s CFO David Zinsner said that we see that the slowdown in the PC market will continue at least till the first half of next year (H1 2026). Despite this, we will continue to make disciplined investments in capacity and working capital to drive future growth and supply.

For these reasons, Intel has estimated revenue of $15 billion to $16 billion in the current quarter, which is much lower than analysts’ estimate of $17.1 billion.

Selloff across tech sector; Alphabet, Amazon and Qualcomm also broke

The entire tech and semiconductor sector was affected by Intel’s setback. The tech-heavy index Nasdaq closed 2.9% lower on Friday.

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