Intel Stock Plunges in Worst Day in Two Years, Erasing $128 Billion

Intel shares are sinking toward their worst single-day performance in two years, wiping out roughly $128 billion in market value, according to MarketWatch. The sharp selloff marks the most severe one-day decline for the chipmaker in two years and underscores mounting investor anxiety over artificial intelligence capital spending and semiconductor earnings.

The magnitude of the move reflects how sensitive investors have become to any signal that AI-driven demand or spending plans may not justify current valuations across the semiconductor sector. A $128 billion wipeout in a single session places Intel at the center of a broader reassessment of chip stocks, where earnings expectations have been stretched by the AI investment cycle.

For investors, the key question is whether the decline represents a company-specific reaction or a wider repricing of semiconductor earnings outlooks. With AI capex under intense scrutiny, any disappointment in chipmaker results or guidance is being punished severely.

What to watch next: whether Intel's losses stabilize or extend into further sessions, and whether the selloff spreads to other semiconductor names exposed to AI spending. Traders will also focus on any commentary from Intel or analysts clarifying the drivers behind the move and what it implies for the sector's earnings trajectory.