Intel Profits Jump 51%, But Slowdown Seen

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. (More Intel stories.)