Shares of American semiconductor manufacturer Intel crashed by nearly 29 percent on Friday, triggering a broad sell-off across international financial markets and wiping out roughly $140 billion, or ₹13.30 lakh crore, in corporate market valuation. Regarded as the firm’s steepest single-day market retreat since the 1970s, the slump was precipitated by disappointing quarterly sales guidance, a prolonged slump across the personal computing sector, and sudden operational disruptions at an overseas fabrication facility. The erosion in share value also dealt a severe paper blow to key institutional backers. The United States government, which acquired an estimated 10 percent equity holding last year, recorded an asset value reduction of approximately $12 billion, or nearly ₹1.14 lakh crore, though its broader portfolio position is believed to remain positive. Graphics chip designer Nvidia, which retains a notable stake in the corporation, suffered a concurrent valuation decline of approximately $6 billion, or ₹57,000 crore.
Tepid Revenue Outlook and Structural PC Slump Rattle Street Confidence
Investor nervousness intensified after management presented a quarterly revenue forecast ranging between $15 billion and $16 billion, representing ₹1.42 lakh crore to ₹1.52 lakh crore. The guidance fell markedly short of consensus projections compiled by industry analysts, who anticipated top-line figures exceeding $17 billion, or roughly ₹1.61 lakh crore. Compounding market apprehension is an entrenched contraction across retail consumer hardware. Intel expects the personal computer segment to shrink by 12 percent over the current year, followed by an additional 10 percent retreat in 2027. Rising demand from commercial artificial intelligence infrastructure has simultaneously driven up procurement expenses for memory hardware, raising overall device assembly costs and deterring consumer purchases.
Production Suspension in Israel and Supply Chains Weaken Turnaround Hopes
Operational difficulties deepened operational strain after Chief Executive Officer Lip-Bu Tan confirmed that an industrial accident at a fabrication facility in Israel forced a multi-week shutdown of manufacturing activities. The closure interrupted regional shipment schedules, compounding parallel sourcing hurdles involving a critical chemical and component raw material. While current capital investments aimed at expanding operational foundry capacity are slated to provide operational relief by the second half of next year, acute manufacturing bottlenecks have severely burdened current financial deliveries.
Broader Semiconductor Sector Slumps Despite High Data Centre Growth
The market reversal arrives as an acute test for Chief Executive Lip-Bu Tan, who took operational leadership of the technology giant in March 2025 to re-establish its standing in next-generation computation. Intel equity had gained 150 percent across the year prior to Thursday’s earnings announcement, supported by rising uptake of central processing units in server applications. Following the release, brokerage firm D.A. Davidson lowered its investment rating on Intel from Buy to Neutral, citing severe weakness across the personal computing domain and an untenable short-term valuation multiple. Despite an impressive 78 percent annual revenue surge within its Data Centre and Artificial Intelligence division, and company estimates that the global server processor market could surge from $40 billion to $200 billion over five years, overall investor confidence remained shaken. The decline spread to peer semiconductor producers, pulling down shares of competitors including Broadcom, AMD, and Micron.
