Intel Data Center Revenue Soars 78% But Memory Crunch Tanks Stock
Shares of Intel are getting hammered in pre-market trading after the Santa Clara chip maker posted a softer-than-expected outlook as part of its third-quarter earnings summary. Concerns over the state of the consumer PC market and the lingering memory shortage are evidently overshadowing Intel's strongest data center revenue in 15 years, with the company reporting a whopping 78% year-over-year jump to $7.3 billion.
That figure also represents a $1 billion sequential uptick for its Data Center and AI (DCAI) division, fueled by strong demand from hyperscalers, server-grade processing hardware, emerging cloud providers, and overall enterprise spending.
Intel's Data Center Business Booms On Surging AI Demand
AI infrastructure spending is helping drive the momentum, with Intel's Xeon processors playing a major role in supporting AI workloads. Related, the company says Granite Rapids has become its largest server CPU family, while Clearwater Forest is shipping to paying customers and Diamond Rapidsremains...
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