Intel Drops 31% in a Day as Data Center Sales Jump 78%

INTC shares fell 31% in a single session after weak PC sales guidance and a factory accident in Israel overshadowed a 78% revenue jump in its data center segment.

The split inside the business is the story. Data center and AI now deliver $3 billion in operating profit, ahead of the $2.3 billion from client computing. Interpretation: the profit mix has shifted toward servers, yet the stock reacted to the weaker PC outlook and the Israel disruption rather than the growth segment's strength.

Management projects the server CPU market could grow fivefold to more than $200 billion within five years. That is a long-dated target, and the selloff suggests investors are focused on nearer-term execution instead.

Even after the 31% drop, INTC trades at 42x forward earnings. Interpretation: that multiple leaves little cushion if PC weakness persists, and the article flags it as a factor that may limit upside.