Intel's Shares Plunge 20% as A.I. Hinders Some Parts of Its Business
The chipmaker, whose largest investor is the U.S. government, reported that the A.I. boom’s domino effect had hurt sales to personal computer makers.
TL;DR
- Intel reported a 21% increase in third-quarter revenue to $16.5 billion.
- Demand for AI chips significantly contributed to the revenue growth.
- Intel projects lower revenue and profits for the current quarter due to a memory chip shortage.
- The memory chip shortage is impacting the personal computer market.
- PC makers have raised prices and shipped fewer systems, hurting Intel's PC chip sales.
- Intel's stock plunged 20% in after-hours trading following the announcement.