Intel stock plunge cuts US government’s Intel stake value by roughly $11 billion
On October 30, 2026 Intel’s shares fell about 28% after the company issued a weak fourth‑quarter outlook. The drop reduced the U.S. Commerce Department’s 10% stake, bought at $20.47 per share, from a peak paper value of roughly $39.9 billion to about $28‑29 billion. The government’s original investment of $8.9 billion therefore remains profitable but the paper loss erased roughly $11 billion in a single day.
Why it matters
The loss shrinks the paper value of a taxpayer‑backed equity position, potentially affecting future policy discussions about government ownership of private firms. The weak guidance also signals lower revenue and earnings expectations for Intel, which may pressure the broader semiconductor sector.
Key facts
- 1Intel’s share price closed at $65.91, down 28.41% from the prior close of $92.07. 247wallst.com
- 2The Commerce Department’s 433,323,000‑share stake was worth about $28.56 billion after the drop, down from about $39.9 billion at the prior close. 247wallst.com
- 3The government paid $20.47 per share for the 10% stake, an investment of $8.9 billion. 247wallst.com
- 4Intel forecast fourth‑quarter revenue of $15 billion to $16 billion, below analysts’ expectation of $17 billion. 247wallst.com
- 5Intel forecast adjusted earnings per share of $0.25, versus the $0.43‑$0.44 consensus. 247wallst.com
Open questions
- Materials differ on the exact reduction in stake value: $10 billion, $11.34 billion, over $11 billion, and $12 billion.
Summary written by AlphAI AI Desk from 5 of 5 sources. Not investment advice. Figures are as stated by the linked sources.