Chipmaker, Intel, saw its shares close down by more than 10 per cent after trading on 23rd October 2020, one day after the company released its third-quarter earnings. The earnings report shows new weakness in its data center business and reiterates the delay of its latest-generation chips.

The company’s Data Center Group saw a 7% revenue reduction in the third quarter. Intel’s Data Center Group generates its revenue from enterprises and government customers. In the quarter that ended on 26th September 2020, Intel saw its revenue decline by 4% on an annualised basis.

The company had said in July 2020 that it was delaying its 7-nanometer processors until 2022 for computers. It also said it was delaying the 7nm chips for servers till 2023.

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Intel CEO Bob Swan, at the time, said to CNBC; “We have the decision to make about whether to build that next generation of products on Intel’s manufacturing footprint, on third party manufacturing footprint or on a mix of both. We’ve been designing our products to have the inherent flexibility to make those decisions over time”.

Swan now says that it is unlikely that Intel can provide any additional information till January 2021. The latest result shows Intel shares has reduced by about 20 percent in 2020 alone.

This doesn’t bode well for the company in comparison to its rivals. AMD, who already sells 7-nanometer processor chips for PCs and graphics cards, saw its stock rise by 3%. AMD’s shares have increased by more than 78% in 2020.

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