According to foreign media reports, for many technology companies, China’s huge market and cloud computing business has always been their optimism for growth, but Intel’s quarterly financial forecast on Thursday local time is expected. This triggered investors’ concerns about the company’s market in China and the cloud computing business, which caused its share price to fall and spread to the stability of the entire stock market.
The chipmaker giant made a lower-than-expected first-quarter earnings forecast, and the company’s executives’ downgrades were largely attributed to the possibility of a decline in PC sales in China, while China’s The supplier is a huge market. “Our team in China has become very cautious about the next step,” Intel Chief Financial Officer Stacy Smith said in the company’s fourth-quarter earnings conference call.
Intel’s data center group’s fourth-quarter revenue grew only by .%, compared with a 12% increase in the third quarter. After making the first cautious expectations and the above comments, Intel shares fell 9% on Friday. Other technology companies affected by this include computer memory chip maker MICRON TECHNOLOGY Inc. shares fell 8%, Intel rival AMD shares fell 8%, cloud computing services company Rackspace Hosting shares fell 7%, computer manufacturing HP shares fell?%?/p>
Intel is headquartered in Santa Clara, Calif., and its products are primarily chips for PC computing engines. Intel has been hit hard in recent years as consumers turn to mobile products such as smartphones. Intel said on Thursday that PC chip shipments in the fourth quarter fell 16% from a year earlier. China, the world‘s largest PC market, has a particularly strong impact. However, Intel did not provide its performance figures in the Chinese market, but insiders said PC sales were weak. According to Handel Jones, an analyst at International Business Strategies, “PC’s performance in the Chinese market is not good.”
Jones said that one factor that affects Intel’s fate in China is that many consumers in China love tablets, which often don’t use Intel’s chips.
On the server side, however, Intel executives recently said that the decline in sales to companies that buy their own servers to operate their servers has been offset by sales to cloud computing companies. Diane Bryant, senior vice president and general manager of Intel Data Center Group, said at an analyst meeting in November that the seven largest cloud computing companies are buying servers with a 30% increase. The seven companies are Google, Amazon, Facebook and Microsoft in the US and Tencent, Baidu and Alibaba in China.
As a result, some of the analysts were surprised by the 5% growth in the fourth quarter of the data center division. In this regard, Intel executives pointed out several reasons. Smith said that sales of the data center business increased by 5% over the same period last year, so the department is a high base year. Intel CEO Brian Krzanich said that many cloud computing companies don‘t want to disrupt business in the fourth quarter of the sales season due to the installation of new computers.
Intel’s data center group had revenues of $16 billion last year, up 11% year-on-year. Kozianik told analysts that he is very confident in the data center business and will continue to maintain double-digit growth.