Intel plunges as weak PC demand sparks global chip selloff

Intel shares sank 30% on Friday, putting the company on course for its biggest one-day decline ever and triggering a global semiconductor selloff. The chipmaker forecast quarterly revenue more than $1 billion below market estimates and said it does not expect positive cash flow this year. The plunge was set to erase more than $146 billion from its market value.

Weakening PC demand and rising memory prices are squeezing Intel’s consumer business as memory suppliers shift production toward high-bandwidth chips for AI systems. Meanwhile, spending on its contract manufacturing ambitions is draining cash, and supply disruptions are limiting its ability to meet growing demand for data-center processors. The reversal followed a rally that had more than doubled Intel’s share value this year.

The fallout spread across chipmakers and server manufacturers, with ASML falling more than 6% and TSMC nearly 2%. South Korea’s KOSPI slid 3.5%. Investors were already concerned about heavy AI infrastructure spending and borrowing among major technology companies. Government and Nvidia investments have strengthened Intel’s finances, but it ended September with $21.84 billion in cash and cash equivalents against $46.32 billion in long-term debt.