Intel sank 30% on Friday and was headed for ​its biggest one-day decline ever, deepening a selloff in tech stocks as weakening PC demand and the soaring costs of the AI boom ‌rattled investors.

The major PC chip supplier on Thursday forecast quarterly revenue that was more than $1 billion below market estimates and said it does not expect positive cash flow this year, the latest sign of the far-reaching strains caused by the massive AI buildout.

Intel Corp. has officially qualified for as much as $3.5 billion in federal grants to make semiconductors for the Pentagon, according to people familiar with the matter, after the chipmaker reached a binding agreement with US officials.