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Comment on Intel to cut 15% of headcount, reports quarterly guidance miss

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Some of the financial punchline:

Revenue: $12.83 billion vs. $12.94 billion expected, $110M under expectation, and revenue declined 1% year over year in the fiscal second quarter.

Why is this a punchline?

Because their core business, the Client Computing Group that makes PC chips contributed $7.41 billion in revenue, up 9% and right around the $7.42 billion consensus, so that part is doing fine.

But the Intel’s Data Center and Artificial Intelligence unit posted $3.05 billion in revenue. The result was down 3% and lower than the $3.14 billion StreetAccount consensus, which accounts for pretty much all of the decline in expectation.

The shortfall almost entirely is in the Data Center and AI Unit.

Bellweather?

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