With the historic collapse, Intel's share price plummeted and its market capitalization wiped out more than 50 billion.

Beijing, January 28 (Xinhua) Intel lost about $8 billion (54.3 billion yuan) in market value on Friday. Earlier, the company's dismal earnings forecast puzzled Wall Street and raised investors' concerns about a downturn in the PC market.

Intel CEO Kissinger closed down 6.4 per cent as of Friday, while rivals AMD and Nvidia were up 0.3 per cent and 2.8 per cent, respectively. Shares in KLA, its supplier, closed down 6.9 per cent after Intel released a disappointing earnings forecast.

Intel shares fell 6.4 per cent "nothing can describe or explain Intel's historic collapse," said Hans Mosesmann, an analyst at Rosenblatt Securities. He is one of 21 analysts to cut Intel's stock price target.

Intel, which on Thursday expected an unexpected loss in the first quarter and a revenue forecast of $3 billion lower than Wall Street expected, is also grappling with slowing growth in its data center business. The bleak outlook highlights the challenges facing Pat Gelsinger, Intel CEO Pat Kissinger. He is trying to rebuild Intel's dominance in the industry by expanding its contract manufacturing business and building new factories in the US and Europe.