Intel Reports Record Data Center Growth Amid Weak Q4 Guidance and Share Price Drop
Intel (INTC) reported a significant surge in data center and AI revenue, which grew 78% to $7.3 billion, marking its strongest performance in the segment in 15 years. Despite this momentum, the company's stock fell approximately 18% in after-hours trading following a cautious fourth-quarter outlook that projects lower revenue, gross margins, and earnings. The downward guidance is primarily driven by an expected slowdown in the PC market through the first half of next year. Additionally, Intel faces headwinds from increased share dilution following a $23 billion public offering and higher fixed costs associated with its manufacturing operations. While demand for Xeon server chips currently outpaces supply, management's forecast suggests that data center strength will not be enough to offset broader cyclical weaknesses.
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Topics: data center revenue earnings report gross margin revenue guidance stock price drop
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Part of the story Arm Holdings Shares Drop Nearly 10% Following Intel's Weak Guidance (9 articles)