Oct 30 (Reuters) – Intel (INTC.O), opens new tab tumbled 29% on Friday and was on track for its sharpest one-day decline, deepening a broader retreat in technology stocks as investors grew increasingly wary of weakening PC demand and the vast spending required to build out AI infrastructure.
The steep fall put the US chipmaker on track to shed more than $137 billion in market value, underscoring the challenges facing CEO Lip-Bu Tan’s turnaround as a prolonged PC slump offsets heavy investments in AI and manufacturing expansion.
“The market is in a sell first, ask questions later mood right now, and Intel’s warning has given investors an easy excuse to take some money off the table across chip stocks,” said Matt Britzman, senior equity analyst, Hargreaves Lansdown.