Intel Tumbles as Investments Weigh on Profit Forecast
- Outlook renews concerns about Gelsinger’s spending spree
- Demand for server chips, meanwhile, has helped bolster sales
This article is for subscribers only.
Intel Corp. shares fell on Thursday after the company gave a disappointing profit forecast, fueling concern that Chief Executive Officer Pat Gelsinger’s costly turnaround plan will weigh heavily on the chipmaker’s financial performance.
Earnings will be 80 cents a share in the first quarter, excluding some items, Intel said Wednesday. Analysts projected 86 cents a share on average. Gross margins also are tightening at Intel, once one of the most profitable companies in the industry.