Intel stock falls despite earnings beat, as data-center sales slump more than 20%

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New CEO Pat Gelsinger says Intel will ‘fight for every socket’ in the competitive data-center market.

Intel Corp. shares fell in the extended session Thursday despite a big earnings beat and a raised annual forecast, as a large dip in data-center sales was papered over by strength in sales of personal computers and a departing memory business.

On a call with analysts, Intel Chief Executive Pat Gelsinger, in his first earnings report since officially taking over, noted that Intel had just recently launched its new generation of Xeon server chips, codenamed “Ice Lake,” and that the industry is just beginning to emerge from a digestion phase from data centers and that Intel is “starting to see signs that they want to start the next build phase in their cloud.

As incoming CEO, Gelsinger dropped into Intel’s last earnings conference call to detail his plans for the chip maker, and then gave more specifics in an event last month after taking the helm.

 

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