Intel reported quarterly revenue of $16.5 billion, up 21% from a year ago, with data center and AI revenue reaching $7.3 billion, up 78%, its strongest data center revenue growth in 15 years. GAAP gross margin rose to 43% from 38.2%, but GAAP EPS fell to $0.60 from $0.90, as last year's quarter included a $5.45 billion gain from selling most of its Altera stake and the diluted share count rose after heavy stock sales, including a $23 billion public offering this quarter. For the fourth quarter, Intel guided revenue to $15.0 billion to $16.0 billion, below this quarter, and GAAP gross margin to 37.1%; the article suggests lower sales spread across fixed costs could explain much of the margin drop, though the company did not explain it. Demand for server chips is outpacing Intel's production, but a PC slowdown is expected to last through the first half of next year. Shares fell about 18% in early after-hours trading.
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