Intel Server Sales Jump 78%, Q4 Outlook Dims: Rapid Earnings Reaction

Intel reported its strongest data center revenue growth in 15 years with a 78% jump and tripled operating income, but shares fell 18% after-hours due to a weak Q4 forecast showing lower revenue, gross margin, and earnings. While server chip demand outpaces supply, a PC market slowdown expected through mid-2025 is offsetting data center strength.