Intel forecast misses estimates; shares tumble
Intel forecast second-quarter revenue and profit below market estimates on Thursday, sending its shares tumbling roughly 8% as it faces weak demand for its traditional data center and PC chips and trails in the surging market for AI components.
Businesses have prioritized spending on advanced and speedy artificial intelligence server chips, hurting demand for Intel's central processing units (CPUs), which have been the mainstay chip powering data centers for decades.
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Offering CollegeCourseWebsiteIIM LucknowIIML Executive Programme in FinTech, Banking & Applied Risk ManagementVisitIndian School of BusinessISB Professional Certificate in Product ManagementVisitIIM KozhikodeIIMK Advanced Data Science For ManagersVisit Helped by its software, Nvidia dominates the market for AI chips with its powerful graphics processing units (GPUs), and commanded roughly 80% share last year.
Intel's other largest market — PC chips — has suffered a difficult two years, but has shown signs of life at the beginning of 2024.
While Intel lost $11 billion in stock market value following its results late on Thursday, Nvidia's value grew by $40 billion, lifted by strong results from Microsoft and Alphabet as the two cloud heavyweights race to expand their AI product lineups.
«Intel is still very much a 'show me' story. So I think when you get quarters where they don't execute and they promise more at a future point, that there's some skepticism around their ability to deliver,» said
