PC chip plunge wipes out a quarter of Intel’s value
CEO predicts massive datacenter CPU boom, coming soon, but production problems mean Chipzilla may not cash in
Intel's share price plummeted by nearly a quarter after the company disclosed a sharp decline in sales of PC processors. Despite strong revenue growth for datacenter and AI products, client computing and physical AI products saw a five percent year-over-year decrease, leading to a 12 percent contraction in the PC chip market next year.
Intel CEO Lip Bu Tan claimed that demand for CPU chips would surge due to energy efficiency concerns in AI infrastructure, estimating a potential $200 billion server CPU market within five years. However, CFO Dave Zinsner warned that Intel may struggle to meet this demand due to supply shortages and the memory crunch. Investors reacted negatively, with Intel's stock falling from $92.96 to $70.87 in after-hours trading, marking a 23.7 percent decline.
Written by urgent.news from The Register's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
This story
This is one outlet's version. Read the fullest account.
- PC chip plunge wipes out a quarter of Intel’s value theregister.com
- Intel shares tumble after hours, hit by chip supply constraints, big cash burn channelnewsasia.com
