· ai-devtools
PC chip plunge wipes out a quarter of Intel’s value
Intel’s share price sank by almost a quarter on Thursday after the company disclosed a deep dip in sales of PC processors.
The rout began after the silicon-slinger posted Q3 results that included some nice numbers, such as a 21 percent year on year revenue jump to $16.5 billion, helped by 78 percent growth for datacenter and AI products, and gross margins of 43 percent. The revenue number was at the high end of Intel’s revenue guidance of $15.8-16.8 billion, and the gross margin beat its predictions by two points. Outweighing those upsides was a decline in revenue for client computing and physical AI products, which saw incoming cash reach $8.1 billion but fall five percent year-over-year and nine percent decline from last quarter.
In prepared remarks [PDF] published to coincide with Intel’s earnings announcement, CEO Lip Bu Tan said “In recent weeks, our customers began signaling a PC slowdown based on memory prices and availability. Year-to-date system end-point prices have increased significantly placing additional pressure on already limited IT budgets.”
