Intel’s stock price fell nearly 30% on Friday, reducing the U.S. government’s stake in the company by more than $11 billion, although the deal remains profitable overall.
Last August, the Trump administration took a 9.9% stake in the chipmaker at a price of $20.47 per share, according to a company press release at the time.
This initial holding of 433.3 million primary shares was worth approximately $8.9 billion. The value climbed dramatically earlier this year, with Intel (INTC) closing Thursday at $92.07 per share, implying a value to the U.S. government of $39.9 billion.
But the stock took a hit on Friday after the company released its results Thursday evening. The stock closed lower on Friday about 29% to $65.76 per share, suggesting a new paper value for the government’s stake of $28.5 billion.
65.76 -26:31 (-28.58%)
Closing: October 30 at 4:00:01 p.m. EDT
64.89 -0.87 (-1.32%)
The rapid change in prices highlights the extent to which government investments can engage investors a wild ride and presents a new challenge for a centerpiece of the Trump administration’s portfolio, which now spans 40 companies, according to a CATO Institute tracker.
A loss of nearly $150 billion for the company
Investors punished Intel after its fourth-quarter revenue outlook came in below Wall Street expectations and the company reported a worse-than-expected drop in PC revenue.
Intel forecast fourth-quarter revenue of $15 billion to $16 billion, well below the $17 billion expected by analysts. The company expects earnings per share of $0.25 versus expectations of $0.43.
This change in perspective led to losses that, at times Friday morning, putting Intel on the verge of its worst losses since 1974, as the company as a whole wiped out nearly $150 billion in market value.
The government’s investment in Intel — which Trump promised would bring outsized returns to taxpayers — is a recurring theme at the White House. In September, an image on Truth Social depicted the president as a stock trader in the Oval Office, with Intel’s price displayed on a screen at $95 per share.
Trump has exaggerated the gains before, suggesting at one point, “I made hundreds of billions of dollars on stocks, and many other types of securities, for the United States, not for myself.”
Despite this, the investment in Intel remains very profitable and still ended the day Friday more than three times what the United States paid for it.
This story has been updated.
Ben Werschkul is Yahoo Finance’s Washington correspondent.
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