Intel Profits Jump 51%, But Slowdown Seen

Chipmaker cautious on 2008 as global PC market cools
By Jim O'Neill,  Newser User
Posted Jan 16, 2008 8:12 AM CST
Intel Corp. Chief Executive Paul Otellini shows off a wafer of new chips with super-small 32-nanometer circuitry at the Intel Developers Forum in San Francisco, Tuesday, Sept. 18, 2007. (AP Photo/Paul...   (Associated Press)
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(Newser) – Intel's net income leaped 51% in the fourth quarter—the No. 1 chipmaker's largest increase in 14 quarters—to $2.27 billion. But the glow was dimmed by what looks to be a cooling PC  market, leading to lower projections for 2008, and sending Intel’s share price down 14% in after-hours trading, reports the Wall Street Journal.

Strong demand and reduced production costs helped Intel’s fourth quarter gross profit margin reach 58%; the company’s revenue rose a disappointing 10.5%. PC shipments began to slow late last year, pinching Intel as it regains its edge over rival AMD, still struggling to release its latest chipset. Analysts say Intel’s revenues could slump as much as 10% in the first quarter.