Intel's Awful Day Highlights a Brutal Tech Selloff

Wall Street is handing Intel and the world of AI a painful reality check. The chipmaker's shares sank nearly 30% Friday—on track for their worst day since the mid-1970s—after it projected weaker earnings, reports CNBC. And Intel is not alone: The tech-centric Nasdaq was down 3%, with Amazon, Alphabet, Nvidia, Broadcom, and Qualcomm all sliding as investors question just how long the AI spending boom can outrun profits. The benchmark S&P 500 was off nearly 2%, and the Dow about 1%, per the Wall Street Journal. For the Dow, that translates to roughly 500 points.

Intel blamed its weak numbers in part on sinking PC sales, and it expects that market to shrink 12% this year and 10% next year. CNBC notes that the Trump administration directed the US government to take a 10% stake in Intel last year, and the value of those holdings plunged by about $12 billion on Friday. However, the investment is still above water, notes the outlet.