Intel's Data Center Business Is Struggling
Given how strongly the major cloud computing companies are growing, it's a little surprising how poorly Intel's (NASDAQ: INTC) data center business performed during the second quarter.
Intel's enterprise customer base is far broader than cloud computing providers, and recession fears are starting to impact purchasing and expansion decisions at businesses. But the company wasn't even in the ballpark of expectations.
Intel's data center and artificial-intelligence (AI) segment produced $4.65 billion of revenue in the second quarter, down 16% year over year. Analyst Vivek Arya of Bank of America (NYSE: BAC) Merrill Lynch pointed out during the earnings call that this performance was close to 25% below expectations, which was likely a big reason the stock had dropped around 9% by Friday afternoon.
Source Fool.com
