Intel’s Data Center Revenue Surges as Forecast Misses Estimates

Intel reported third-quarter revenue of $16.5 billion, up 21% from a year earlier, as its data-center business surged and its client-computing unit contracted. The company’s forecast for the current quarter fell below analysts’ expectations, reflecting weaker PC demand and ongoing limits on its ability to supply server processors. Revenue from Intel’s Data Center and AI business rose 78% year over year to $7.3 billion. Client Computing and Physical AI revenue fell 5% to $8.1 billion, remaining larger than the data-center segment despite its decline. Intel reported adjusted earnings of 52 cents per share for the third quarter. For the fourth quarter, Intel projected revenue of $15 billion to $16 billion and adjusted earnings of 25 cents per share. The revenue range was below the roughly $17.1 billion analysts expected, while the earnings forecast was also below the 43-cent estimate reported by analysts surveyed by LSEG. Chief Executive Lip-Bu Tan said demand for server CPUs was outpacing supply and that Intel was shifting some manufacturing capacity from client products to data-center processors. The company is expanding production of Xeon chips and advanced packaging, and...