Intel (NASDAQ:INTC) shares down 9% after the chip manufacturer has announced its fourth quarter financial results. The company has been straggling with the slowing PC market for the last few years, yet Intel’s strength came from the data centers, with growing demand and sales of servers chips that power cloud computing. Yet the fourth quarter report raised concerns regarding the segment.
The semiconductor has reported that sales of chips for server systems increased 5% over the last quarter, which is more than twice less than the number that were recorded during the third quarter. Analysts have, of course, anticipated growth in this segment to be in double digits.
Besides the data center segment, Intel’s performance this quarter was a mixed bag. The chip manufacturer has reported net income of $3.6 billion from the fourth quarter, which is a decline 1% from last year. Revenue increased 1% to $14.9 billion. Intel’s PC processors, under the company’s Client Computing Group, has generated the revenue: $8.8 billion, which is a decline of 1% compared to a year ago.