Intel shares plunged 29% on Friday, marking the chip giant’s biggest single-day drop and impacting the entire tech stock market. Intel’s market capitalization evaporated by over $137 billion, as the continued slump in the PC market offset the company’s massive investments in AI and manufacturing expansion. Semiconductor companies such as AMD, Arm Holdings, Qualcomm, Nvidia, Broadcom, and Micron saw share prices fall between 2% and 10%. Server manufacturers like Dell, HPE, and AMD saw share prices drop between 6% and 10%. Intel expects fourth-quarter revenue to be between $15 billion and $16 billion, below the average analyst estimate of $17.07 billion. Intel CFO David Zinsner also stated that the company does not expect to achieve positive cash flow this year. The PC market downturn is expected to continue at least until the first half of next year.
