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.

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