Intel stock plunges 28% as AI squeezes PC parts

On Friday, October 31, 2026, BBC News reported that US stocks kept sliding as concerns over the rising costs of the AI build out intensified. Intel, which had warned of a weaker computer market even as it plans to increase spending on AI, fell as much as 30% during early trading. Amazon dropped as far as 6% before recovering, after its earnings released Thursday evening missed investors' expectations. Other tech names including Reddit and Roblox also continued to fall, and the Nasdaq opened down 2.5%, its lowest level in more than two months. The losses followed Alphabet's earlier collapse of more than $500 billion in market value after AI summaries undercut its search advertising revenue.

Later that morning, TechCrunch filled in the details behind Intel's crash. The chip maker guided fourth-quarter revenue to $15 billion to $16 billion, below the roughly $17 billion analysts had expected, and said the AI industry's heavy consumption of memory and other components is driving up PC prices and dragging on PC sales. Intel's stock sank around 28% on Friday, one of its worst days ever. Per CNBC, the selloff cut the value of the government's holdings in Intel by $12 billion; the Trump administration had bought a 10% stake a little over a year earlier. Nvidia, which had also taken a large stake in Intel in 2025, slipped a bit on Friday as well, and much of the tech sector, especially chipmakers, was caught in the rout. As of now, the story stands at the market fallout and supply-chain impact stage following Intel's plunge.