Intel plunged 28.6% for its worst drop since 1974 — and the AI sell-off gave the S&P 500 its worst day since June

Intel shares fell 28.6% on Friday, marking the company’s sharpest single-day decline since 1974. The drop came as a broader sell-off in technology stocks intensified amid concerns that enthusiasm for artificial-intelligence technology had pushed prices too high.

AI concerns weigh on technology stocks

The decline highlighted the market’s growing sensitivity to the valuations surrounding artificial-intelligence businesses and related technology. A sell-off that had already pressured tech stocks became more severe as investors questioned whether prices had risen beyond levels supported by current expectations.

The pressure was not limited to Intel. The AI-related sell-off helped drive the S&P 500 to its worst day since June, extending the impact from individual technology shares to the wider market.

Why the move matters

Intel’s fall stands out because of both its size and its historical significance. A decline of this magnitude can become a focal point during a market sell-off, particularly when it occurs alongside broader concerns about a major investment theme such as artificial intelligence.

Friday’s trading showed how quickly doubts about elevated technology prices can spread across the market. The available information does not indicate how long the sell-off will continue, but the day’s losses underscored the risks facing technology stocks as scrutiny of AI-related pricing increases.

Market impact

Intel’s record-setting decline and the S&P 500’s weakest session since June placed the AI-driven technology sell-off at the center of Friday’s market action.