Intel shares climbed more than 12% in extended trading on Thursday after the chipmaker forecast current-quarter revenue above estimates and beat expectations for the third quarter. <\/p>\n
Intel reported a massive net loss on Thursday, weighed down by impairment and restructuring charges. <\/p>\n
The company has largely missed out on a boom in investments in speedy, advanced AI chips for data centers as businesses double down on adopting generative AI technology – a market dominated by Nvidia, followed by rival AMD. <\/p>\n
Intel reported a net loss attributable to Intel of $16.6 billion for the third quarter, compared with a net profit attributable to Intel of about $300 million in the year-ago period. <\/p>\n
As one of the largest makers of PC chips, Intel has benefited as the rollout of on-device AI features and a fresh Windows update cycle have renewed demand for PCs after a years-long slump, helping the company surpass Wall Street’s low expectations. <\/p>\n
Revenue in Intel’s Client Computing Group – which includes its PC chips for desktop and laptop computers – fell 7% to $7.3 billion. Analysts estimated the client segment would shrink to $7.38 billion. <\/p>\n
The company expects revenue to be between $13.3 billion and $14.3 billion for the current quarter, the midpoint of which is above analysts’ average estimate of $13.66 billion according to data compiled by LSEG. <\/p>\n
Analysts also expect demand for traditional server chips made by Intel – its mainstay data-center semiconductors – to pick up in the second half of the year after several quarters of soft demand as investment is funneled to AI chips. <\/p>\n
For the data center segment, which includes AI chips, Intel reported revenue grew 9% to $3.3 billion, which beat analyst estimates of $3.16 billion. <\/p>\n
However, Intel’s share of the PC and server CPU market is consistently threatened by AMD, which now boasts a market valuation larger than that of Intel and is also the closest competitor to market leader Nvidia in AI graphics processors. <\/p>\n
In an interview, Intel finance chief David Zinsner said the company planned $12 billion to $14 billion in capital spending in 2025. <\/p>\n
Revenue in the company’s contract manufacturing business, or foundry, shrank to $4.4 billion. Intel reported an adjusted gross margin of 18%, compared with analyst estimates of 37.9%.<\/p>\n","protected":false},"excerpt":{"rendered":"
Intel shares climbed more than 12% in extended trading on Thursday after the chipmaker forecast current-quarter revenue above estimates and beat expectations for the third quarter. Intel reported a massive net loss on Thursday, weighed down by impairment and restructuring charges. The company has largely missed out on a boom in investments in speedy, advanced AI chips for data centers as businesses double down on adopting generative AI technology – a market dominated by Nvidia, followed by rival AMD. Intel reported a net loss attributable to Intel of $16.6 billion for the third quarter, compared with a net profit attributable […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[7],"tags":[],"class_list":["post-872929","post","type-post","status-publish","format-standard","hentry","category-it-2"],"acf":[],"_links":{"self":[{"href":"https:\/\/telecomlive.in\/web\/wp-json\/wp\/v2\/posts\/872929","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/telecomlive.in\/web\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/telecomlive.in\/web\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/telecomlive.in\/web\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/telecomlive.in\/web\/wp-json\/wp\/v2\/comments?post=872929"}],"version-history":[{"count":0,"href":"https:\/\/telecomlive.in\/web\/wp-json\/wp\/v2\/posts\/872929\/revisions"}],"wp:attachment":[{"href":"https:\/\/telecomlive.in\/web\/wp-json\/wp\/v2\/media?parent=872929"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/telecomlive.in\/web\/wp-json\/wp\/v2\/categories?post=872929"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/telecomlive.in\/web\/wp-json\/wp\/v2\/tags?post=872929"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}