Intel's 29% plunge worst since 1970s erases $12B US stake
Intel just had its worst day on the stock market since the 1970s, with shares dropping 29% in a single day.
That plunge erased $12 billion from the US government's investment, an investment made by the Trump administration (which took the 10% stake more than a year ago).
The main reasons? A factory shutdown in Israel and a weak PC market.
Intel lowers guidance after Israel explosion
The fallout is tough for Intel's CEO Lip-Bu Tan, whose turnaround plans just got harder.
An explosion at its Israel plant not only caused tragic loss of life but will also cost Intel around $600 million in revenue.
Now, Intel expects lower earnings than analysts hoped: just 25 cents a share on revenue of between $15 billion and $16 billion.
Despite all this, the US government's stake is still profitable overall thanks to earlier gains, but Friday's crash took a big bite out of those wins.