Intel shares fall, despite upbeat results, due to data-centre losses to rival
Bengaluru — Intel shares fell more than 6% on Friday, after the chip maker’s upbeat results were overshadowed by concerns that Advanced Micro Devices (AMD) may be chiseling off market share from its high-margin data-centre business. The company’s profit and revenue beat Wall Street targets, but double-digit growth in its data-centre chip business fell short of analysts’ expectations and disappointed investors. "Intel stock continues to be under pressure as investors are looking past near term outperformance and struggling with the storyline of potential future share loss to AMD," Barclays analysts said. Intel was at the forefront of selling chips used in making servers where data is stored remotely or in so-called cloud servers. Over the past few years, as more companies rushed to the cloud to move data online, Intel enjoyed healthy gains. Amazon, which beat profit estimates on Thursday due to its cloud business, and Microsoft have been the main beneficiaries of the cloud adoption.<...
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