Intel struggles to meet AI data center demand, shares drop 13%


FILE PHOTO: A smartphone with an Intel logo displayed is placed on a computer motherboard in this illustration created on March 6, 2023. REUTERS/Dado Ruvic/Illustration/File Photo

Jan 22 (Reuters) - Intel said on Thursday it ‌struggled to satisfy demand for its server chips used in AI data centers, and forecast quarterly revenue and profit below market estimates, sending shares down 13% in after-hours trading.

The forecast underscores the ‌difficulties faced by Intel in predicting global chip markets, where the company's current products are the result of decisions made years ago. The company, whose shares have risen 40% in ‌the past month, recently launched a long-awaited laptop chip designed to reclaim its lead in personal computers just as a memory chip crunch is expected to depress sales across that industry.

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