Economics
Intel Drops After Signaling Caution on World Economic Growth
- Chipmaker cites weaker demand for PCs, servers in China
- Year off to `soft' start after strong fourth quarter in 2015
Intel Forecast Shows PC Slide's Impact
This article is for subscribers only.
Intel Corp. shares tumbled the most in seven years after the company said 2016 is off to a “soft” start amid tepid economic growth, particularly in China, which is hurting demand for personal computers and the servers that have fueled growth.
The world’s biggest semiconductor maker predicted revenue for the first quarter that fell short of analysts’ estimates. Intel, which gets more than 80 percent of its sales outside the U.S., is “cautious on the level of economic growth” in China and the rest of Asia, Chief Financial Officer Stacy Smith told investors on Thursday.