NEWS: Intel's performance outlook for the next three years is lagging behind its peers

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Intel (INTC.O) shares fell 2.5% on Wednesday after the company's executives expected a modest increase in profit over the next three years, suggesting that the chip (chip) company, once the industry leader, is catching up in technology while performance is likely Behind large competitors.

Intel once dominated the most important chip market, with a share of more than 90% in the personal computer (PC) chip market. As PC sales stalled, Intel expanded its business to data center processors, memory (memory) and network chips.

This makes Intel a smaller player in the broader market. Intel said on Wednesday that it expects to account for only 28% of this larger market by 2023, which is about $85 billion in sales in the target market of about $300 billion.

Intel CEO Bob Swan said on Wednesday that the company expects revenue and earnings per share to be "single digits" in the next three years, and PC chip revenues are flat, but data center chip revenues are "double-digit" growth. This effect is offset.

Swan also said that the operating profit margin will remain relatively stable at 32%, but the gross profit margin will decline as the company expands its 10 nanometer (nanometer) chip manufacturing technology.

At the time of the company's executives doing the above briefing, Intel's share price fell late, ending 2.5% lower at $49.24.

Summit Insights Group analyst Kinngai Chan said that Intel's financial means that its growth may be slower than other large chip makers, especially in terms of profit.


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