Intel shares sink as executives give three-year outlook

FILE PHOTO: Intel logo is seen behind LED lights in this illustration taken January 5, 2018. REUTERS/Dado Ruvic/Illustration/File Photo

SAN FRANCISCO (Reuters) – Intel Corp shares declined 2.5 percent after executives gave their three-year outlook at an investor day on the company’s Santa Clara, California campus.

Chief Executive Bob Swan said the company sees both revenue and earnings per share growing in the “single digit” percentage range over the next three years, with flat PC chip sales offset by “double digit” percentage revenue growth in data center chips.

Swan also said operating margins would remain relatively steady at 32 percent, but that gross margins would decline as the company ramps up its 10-nanometer chip-making technology, which makes chips faster by making their features smaller.

Intel was once the dominant maker of processors for personal computers and has sought to expand its data center chip business as PC sales stagnated. The company’s shares dropped to $49.24 after the announcements.

Reporting by Stephen Nellis in San Francisco and Akanksha Rana in Bengaluru; Editing by Shinjini Ganguli and Phil Berlowitz

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