Why Intel Fell 14.5% in October
Shares of processor giant Intel (NASDAQ: INTC) fell 14.5% in October, according to data from S&P Global Market Intelligence. Intel's stock had bounced back somewhat after disappointing news regarding 7nm chip delays announced earlier this year, but the third-quarter report sent shares back down, as disappointing results in its key data center group offset strength in its mature PC chips segment.
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In the third quarter, Intel actually outperformed in its PC chip segment, growing 1% in the quarter, as the work-from-home trends sparked many to upgrade their home laptops. However, the data center group fell 7% and overall data-centric chips were down 10%, much worse than expected, as enterprise and governments pulled back on IT spending amid the pandemic. Intel made up some of that, with its cloud sales growing 15%, but those are generally lower-margin deals. The adverse mix caused gross margin to come in at 54.8%, versus 56.8% consensus.
Source Fool.com
