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Intel Shares Slump After Giving Lackluster 2019 Forecast

  • Cloud-computing clients are becoming cautious, CFO Swan says
  • Revenue, profit, forecasts fall short of analysts’ estimates
Bloomberg business news
Intel Reports Lower-Than-Projected Sales, Forecast Disappoints
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Intel Corp. shares fell the most in six months after its first forecasts for 2019 sent a signal to investors that a torrent of spending on data centers, which has nourished sales and earnings growth for years, is beginning to dry up.

The chipmaker’s revenue and profit projections for the current quarter and the year fell short of analysts’ average estimates, sending shares tumbling in late trading on Thursday. Intel, whose processors are the main component in most of the world’s personal computers and servers, cited a slowdown in spending at large cloud-computing customers, softness in China and the impact of geopolitical concerns.