Sales for the current quarter are expected to remain below analyst estimates and profit margins are expected to narrow. This suggests CEO Pat Gelsinger’s efforts to turn the company around need more time.
Intel lags behind rivals like Nvidia and TSMC in both revenue and technology. While the company expects the situation to improve later this year, artificial intelligence chip production is being disrupted due to “restrictions.”
The share price fell in after-hours trading, reflecting investors’ disappointment. This makes a tough year even harder for Intel, whose shares are already down 30%.
Despite the problems, Intel remains optimistic. The company is launching a new AI accelerator and expects its foundry business to become profitable in the next few years.
Source: Ferra
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