Intel shares fell 29% on Friday and were on track for their worst day since 1974, according to CNBC. The chipmaker gave a weaker forecast than expected, citing a slow PC market and a shutdown at its plant in Israel, CNBC reports.

Intel expects to earn 25 cents a share this quarter on sales of $15 billion to $16 billion, CNBC reports. Analysts had expected 43 cents a share on $17.1 billion in sales. "We see the PC slowdown continuing at least through the first half of next year," finance chief David Zinsner said.

PC makers are being hit by soaring costs for memory and other parts, CNBC reports. An explosion at Intel's plant in Israel earlier this month led to an "extended shutdown," CEO Lip-Bu Tan said. Zinsner said it will cost about $600 million in lost sales over two quarters.

The drop is a blow to Tan, who took over in March 2025 and has tried to revive the company, CNBC reports. It also hits the US government, which took a 10% stake in Intel more than a year ago, the outlet reports. That stake lost about $12 billion in value on Friday. Intel shares had been up about 150% this year before the report.

Intel makes its newest 18A chips at a plant in Arizona but still has no outside customers for them, CNBC reports. "We're going to have a couple of customers ready to announce the next two quarters," Tan said.

Other chip stocks fell too, CNBC reports. Nvidia slid 4%, Broadcom about 6% and Qualcomm 12%. The Nasdaq fell more than 2.5% as investors worried about big tech spending on AI, the outlet reports.

What we know: Intel shares fell 29% after a weak forecast tied to PCs and a plant shutdown.
What we don't: When Intel will name outside customers for its new chips. Only CNBC has reported this so far. NewsHabit hasn't seen independent confirmation.