Intel Shares Plunge 31% Amid PC Market Slump and Factory Accident Despite Data Center Growth
Intel (INTC) shares experienced a significant 31% decline following concerns over weakening client computing demand and operational setbacks. The company faces a projected 20% sequential decline in PC chip sales as manufacturers cut inventory, compounded by an accident at its Israel factory expected to cost $300 million in revenue and impact gross margins by 200 basis points. Despite these headwinds, Intel's data center and AI segments showed robust performance, with revenue jumping 78% year-over-year. The data center segment now generates the majority of the company's operating profit at $3 billion, compared to $2.3 billion from the client segment. Management remains optimistic about long-term server CPU market growth, projecting it could expand from $40 billion to over $200 billion within five years.
Tickers: $INTC
Topics: Data Center Revenue Factory Accident Operating Profit PC Market Slowdown
Read the full article at Motley Fool
Part of the story Intel Shares Plunge 31% Amid PC Market Slump and Factory Accident Despite Data Center Growth (6 articles)