CAAP

Intel Corporation (INTC.US) reported 3Q revenue growing 21% YoY to USD16.5 billion, while non-GAAP EPS was USD0.25, below market expectations of USD0.43. The company forecast 4Q sales of USD15-16 billion, lower than the consensus of USD17 billion, dented by feeble demand for PC processors and supply chain issues affecting data center components. The news sent the stock lower by 23% in after-hours trading to USD70.89.

During the quarter, revenue from Intel's data center and AI division swelled 78% YoY to USD7.3 billion. Sales from the client computing division, which manufactures chips for PCs, sagged 5% to USD8.1 billion, while foundry division revenue climbed 58% YoY to USD6.7 billion.

Intel CEO Lip-Bu Tan said one of the key challenges facing the PC market is the upsurge in chip prices, and he expects conditions to remain very challenging next year. He believes the PC market will sink 12% this year and contract a further 10% next year. However, over the long term, the company remains optimistic about demand for its products and is increasing investment in new equipment to boost capacity, with growing confidence in attracting orders from other chipmakers.
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