Intel shares plunge to worst day in five decades as PC demand falters

Intel Corporation's shares cratered to their lowest point in half a century, reflecting deepening concerns about the technology giant's competitive position and near-term prospects. The dramatic sell-off erased approximately $12 billion from the company's market capitalization, marking the most severe one-day loss since the mid-1970s energy crisis era.

The stock collapse came as Intel signalled that weakness in the personal computer market would persist through the first half of 2027, disappointing investors who had hoped for a near-term recovery. The extended downturn in PC demand represents a critical challenge for Intel, which has historically relied heavily on revenues from processors destined for consumer and business computers.

The sharp decline also impacted the US government's financial position, as federal holdings in the chipmaker depreciated significantly alongside the broader share price collapse. This underscores how deeply Intel's challenges are embedded in the broader technology sector and the nation's industrial base.

The severity of Intel's one-day loss reflects investor anxiety about the company's ability to regain market share amid fierce competition from rivals and shifting demand patterns in computing. Analysts will be closely monitoring whether management can articulate a credible path to stabilise operations and restore investor confidence.