Intel Tumbles on Data Center Sales Decline, Tepid Forecast

  • Results stoke more concern about waning industry leadership
  • CFO gives no update on Intel’s production technology problems
Why Intel Shares Are Tumbling After Earnings Report
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Intel Corp. shares slumped after a surprise drop in data center sales and a tepid forecast added to concern that the company is losing its lead in computer chips.

The data center business, a major source of Intel profit, suffered a 10% decline in third-quarter revenue compared with a year earlier after a weak economy hurt sales to large companies and government customers. Sales to cloud computing providers will slow in the current period, Intel said.