Intel Shares Plummet 17% Amid Disappointing Forecast and Manufacturing Woes

• Intel Corp's shares experienced a significant 17% decline, the sharpest drop in 17 months, following a disappointing forecast from CEO Lip-Bu Tan.
• The CEO warned of ongoing manufacturing challenges and lower-than-expected revenue and earnings estimates for the January-March 2026 quarter.
• Production disruptions and low manufacturing yield, the percentage of usable chips, are hindering Intel's ability to fulfill orders and meet demand.
• Intel's CFO, Dave Zinsner, stated that supply will increase every quarter this year, but significant output from new machinery won't occur until 2027.
• The US government holds a 5.6% stake in Intel, valued at approximately $20.4 billion, despite the recent share decline.

Why It Matters: Intel's stock plunged due to manufacturing issues and a weak forecast, signaling a challenging period ahead.