Intel, whose largest investor is the U.S. government, reported that third-quarter revenue rose 21 percent to $16.5 billion as AI demand boosted data center chip sales. But the Silicon Valley pioneer projected fourth-quarter revenue and profits below Wall Street expectations, largely because AI demands have caused a shortage in memory chips needed for personal computers.
Intel's stock plunged 20 percent in after-hours trading after the announcement. The company forecast Q4 revenue of $15 billion to $16 billion, well below Wall Street projections of around $17 billion. It estimated its gross profit margin would decline to 37 percent, from 43 percent in the third period.
Data center unit revenue surged 78 percent from a year earlier to $7.3 billion, while revenue from the PC chip unit declined 5 percent to $8.1 billion. Chief Executive Lip-Bu Tan also faces challenges from a fire at a factory in Israel and efforts to attract external customers to its foundry business. The U.S. government's nearly 10 percent stake is worth around $32 billion after the sell-off.
Source: New York Times Top Stories · Summarized by HeadlinesBriefing