Intel has suffered one of its sharpest stock market declines after disappointing financial guidance triggered a major sell-off in its shares.
The semiconductor company's stock fell approximately 28% during Friday's trading session after its latest outlook for the fourth quarter fell short of analyst expectations.
The decline reportedly reduced the value of the US government's investment in the company by approximately $12 billion.
The US government acquired a 10% stake in Intel more than a year ago as part of efforts to strengthen domestic semiconductor manufacturing and technological competitiveness.
Intel warned that it expected fourth-quarter revenue between $15 billion and $16 billion, below the approximately $17 billion analysts had anticipated.
The company also projected pressure on its gross profit margin and warned that heavy investment requirements could prevent it from generating positive cash flow.
Despite the disappointing outlook, Intel's data centre business recorded significant revenue growth compared with the previous year.
The decline reflects wider uncertainty across the semiconductor industry, particularly as artificial intelligence investment increases pressure on computing resources and component availability.
Investors will now be watching whether Intel can improve its manufacturing capacity, strengthen profitability and regain market confidence.
