The slide came after the chipmaker forecast first-quarter revenue that could miss market estimates by as much as $2 billion.
Chief Executive Pat Gelsinger said the firm's core businesses were hitting a seasonal low in demand, just as other units also saw a slowdown.
Profit margins have also taken a battering from Intel's big investments in AI, though they have rebounded a bit from the lows seen last year.
Now analysts say 2024 looks like a make-or-break year for the firm.
They say it will tell whether Intel can actually benefit from a boom in demand for AI-enabled computers.
Right now it's seen to be suffering at the hands of rivals like Nvidia and AMD, which have a strong grip on the market for AI servers.
Demand for traditional servers - a core business for Intel - has meanwhile dropped.
However, Gelsinger expects that downturn to ease, saying the firm is "past the worst of it".
Intel's cautious outlook will dampen hopes for a recovery in the global PC market, where it has long been a key player.
Recent data from research firm Counterpoint showed worldwide shipments of computers have now dropped for eight straight quarters.
