Intel Drops 31% in a Day as Data Center Sales Jump 78%

Intel's stock plummeted 31% following weak PC sales guidance and a factory accident in Israel, despite strong data center segment performance with 78% revenue growth. The company now generates most of its profit from data center and AI segments ($3B operating profit) rather than client computing ($2.3B). Management projects the server CPU market could grow fivefold to over $200 billion within five years, but near-term PC weakness and high valuation (42x forward earnings) may limit upside.