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Trump's Commerce Department's Intel Stake Fell By More Than $10 Billion In A Day As Stock Craters
24/7 Wall St. • • general
Key Points:
- Intel shares dropped 28.41% to $65.91 on October 30, 2026, resulting in an $11.34 billion decline in the value of the U.S. Commerce Department’s 433 million-share stake, though it remains worth about 3.2 times its original $8.9 billion cost.
- Despite strong Q3 results with 21% revenue growth and earnings beating estimates, Intel’s weak Q4 guidance—forecasting revenue below expectations and a 12% PC market decline in 2026—triggered the stock sell-off.
- The Commerce Department acquired about 10% of Intel in August 2025 through a $20.47 per share purchase funded by CHIPS Act grants and Secure Enclave program money, holding shares and warrants with voting rights aligned with Intel’s board.
- The broader tech sector also experienced declines, with Dell, AMD, and NVIDIA shares falling intraday, while Intel’s foundry business posted a $1.85 billion Q3 operating loss and has yet to announce external customers.
- The government’s position remains unchanged despite the stock drop, but investors will closely watch Intel’s stock performance, chip sector trends, and whether the company secures foundry customers by Q1 2027 to assess the outlook.
