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Intel Server Sales Jump 78%, Q4 Outlook Dims: Rapid Earnings Reaction

Intel (NASDAQ: INTC) posted its strongest data center revenue growth in 15 years, then forecast lower revenue, gross margin, and earnings for the fourth quarter. Shares fell about 18% in early after-hours trading. Demand for its server chips is now outrunning what Intel can make, but the forecast shows that strength can't offset a PC slowdown management expects to last through the first half of next year.

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