Intel's 28.6% one-day fall is its worst since 1971 as AI chip stocks sell off

Intel shares closed 28.6% lower on Friday, the chipmaker's worst trading day since it listed in 1971, after quarterly guidance fell far short of market expectations. The drop came as disappointing earnings triggered a broad sell-off in US technology stocks, with the tech-heavy Nasdaq ending the week sharply lower and marking its worst month in more than a year.

The damage spread beyond Intel. Chipmakers, networking equipment suppliers and other companies that had benefited from the AI boom all closed with clear losses as investors sold ahead of the weekend. Intel's own outlook pointed to a specific pressure: high memory chip prices are weighing on PC sales, a key part of its business, and the company does not expect an improvement until at least mid-2027.

The sell-off also hits the US government's 10.0% stake in Intel, whose value moves with the share price. Intel's guidance, issued on Thursday evening, missed market expectations by a wide margin, according to Token Times.

All major US indices fell by the end of the week, with the technology sector bearing the brunt of the selling.