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Intel Falls Most in Three Months on Data Center Sales Slump

  • Chipmaker’s PC business thrives on potent demand for laptops
  • Company lifts 2021 sales forecast slightly; CEO sees shortages
Bloomberg business news
Intel CEO Wants At Least 30% of Chip Manufacturing in U.S.(Source: Bloomberg)
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Intel Corp., the biggest chipmaker, fell the most in three months after reporting a drop in data center revenue and a steep decline in gross profit margin, a sign it’s losing market share to rivals and customers who are designing their own components.

The PC business performed better on continued demand for laptops that run Intel processors. But the company’s Data Center Group generated first-quarter sales that fell 20% from a year earlier and missed Wall Street estimates. The unit is Intel’s most profitable businesses, so the lower revenue dented overall margins.