Trump Bragged About Intel Stock Gains. Now the U.S. Stake Has Lost $11 Billion

Intel (INTC) reported Q3 revenue of $16.5B, up 21% YoY, with data center revenue up 78%. Despite strong growth, shares fell 28% due to lowered Q4 guidance, with revenue expected to decline to $15B-$16B and gross margin dropping to 37.1%. The company cited a PC market slowdown and share dilution as factors.

Intel's weak guidance caused its shares to drop 29% on Friday, impacting U.S. and Asian markets. Taiwan's TAIEX index fell 812 points at open, with TSMC shares dropping below NT$2,310. Other tech stocks also declined, including AMD, Qualcomm, and Nvidia. Analysts attribute the sell-off to concerns over AI-related capital spending and U.S. economic data.

Intel announced its Nova Lake desktop processor, built on the enhanced 18A-P process, will launch in 2026 and is ahead of schedule. The chip offers up to 9% more speed or 18% lower power compared to 18A. Intel is repurposing Panther Lake wafer capacity for Granite Rapids server chips, indicating a focus on data center and AI demand. Q3 2026 revenue was $16.5B, up 21% YoY, with Client Computing revenue down 5% YoY. Intel expects a PC market slowdown through mid-2027, citing memory price impacts.

On Nov. 2, the KOSPI opened lower, down 1.62%, due to a sell-off in U.S. semiconductor stocks. Samsung Electronics and SK hynix fell 2.89% and 1.13%, respectively. Intel's 28.58% drop and weak guidance contributed to market declines. Concerns about AI investment and memory semiconductor prices also weighed on sentiment.

Intel's shares dropped 28% intraday after an explosion at its Fab 28 plant in Israel caused a two-week shutdown, leading to an estimated $600 million in losses. The incident, attributed to a fire involving specialty gas, disrupted production and may impact server CPU supply.

Samsung Electronics (005930) and SK hynix (000660) fell in premarket trading, down 3.33% and 3.10% respectively, following a 28.58% drop in Intel's shares. Intel's weaker-than-expected earnings outlook and production issues contributed to the decline. Other semiconductor stocks also fell, with concerns about the industry's growth.