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Intel shares fall 29% after a weak forecast, the chipmaker's worst day since the 1970s

Intel stock closed down 28.58% on Friday, CNBC reports, after the company gave weaker-than-expected guidance. It was Intel's worst day since the 1970s. The drop wiped about $12 billion off the US government's stake in the company. CNBC says Intel is being hurt by PC sales, as the AI industry takes up memory and other parts and pushes PC prices up. Tom's Hardware says Intel's gloomy PC outlook wiped $1 trillion off chip companies' stock market value in a day.

Why it matters: This is a sign that the AI boom's demand for memory is hurting ordinary PCs. Expect PC prices to stay high for now.