Intel Outlook Stokes Concern Server Gold Mine Has Lost Shine
- Data-center unit to post yearly drop for first time in decade
- Chipmaker says demand deteriorated from earlier projections
This article is for subscribers only.
Intel Corp., which had been the biggest beneficiary of a years-long, multibillion-dollar spending spree by the cloud-computing industry, signaled an end to an expansion that drove record revenue and profit.
The world’s second-largest semiconductor maker late Thursday predicted its data-center group, which provides the chips that are at the heart of almost all server computers, will post a revenue decline in 2019, its first drop in a decade. Intel also cut its overall annual sales and earnings targets and said this quarter will be worse than analysts estimated, sending shares tumbling in extended trading.