Even Intel's Cloud Business Slowed Way Down
The big news in Intel's (NASDAQ: INTC) third-quarter report on Thursday was the collapse in demand for data center chips from enterprise and government customers. Sales to those customers were down a whopping 47% year over year, an about-face from growth of over 30% during the first half of the year.
It's not surprising that something like this eventually happened. The COVID-19 pandemic has gutted state and local government revenue and created unprecedented uncertainty for enterprises of all sizes. Other enterprise-centric tech companies been feeling pain from their customers pulling back on spending throughout the pandemic. It wouldn't make sense for Intel to be immune.
A bit more surprising was a slowdown in growth from cloud customers within the data center segment. By every indication, the pandemic has accelerated the shift to the cloud. But Intel managed a meager 15% year-over-year cloud growth rate in the third quarter
Source Fool.com
