The chipmaker reported that its data center and AI unit revenue jumped 78% in the third quarter to $7.3B, marking the segment’s strongest growth in 15 years. Despite the AI momentum, Intel shares fell 13% on Oct 29 after the company provided a disappointing outlook for the final three months of the year. Intel guided fourth quarter revenue to between $15B and $16B, while analysts had projected $17.1B, and forecast adjusted earnings per share of $0.25 against the $0.43 consensus.
The decline follows a third quarter in which Intel beat profit expectations with adjusted EPS of $0.52 per share on revenue of $16.5B. The company’s client computing group revenue dropped 5% to $8.1B, and executives warned that a slowdown in the PC market will persist through at least the first half of next year. In other updates, Intel confirmed the completion of a $23B public equity offering and the October release of the 0.9 process design kit for its Intel 14A node.