Intel reported a quarterly profit that beat analysts’ estimates but shares fell on concerns about slowing growth in its highly profitable data center business.
The world’s largest chipmaker’s shares (INTC) fell 2.7% to $31.85 in after-market trading on Thursday.
Revenue in its data center business grew 4% to $4.31 billion in the fourth quarter ended Dec. 26 from the third quarter.
Revenue in the business had risen 8% in the third quarter from the second.
Analysts on average had expected data center revenue of $4.42 billion, according to a Jefferies note ahead of the results.
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Revenue from its mainstay PC business fell about 1% to $8.76 billion from a year earlier.
The company’s net income fell to $3.61 billion from $3.66 billion.
On a per share basis, earnings were flat at 74 cents.
Net revenue rose to $14.91 billion from $14.72 billion.
The fourth quarter of 2015 marked the fifth consecutive quarter of worldwide PC shipment decline, according to Gartner.
Analysts on average had expected a profit of 63 cents per share and revenue of $14.80 billion, according to Thomson Reuters I/B/E/S.