By Max A. Cherney and Arsheeya Bajwa
(Reuters) – Intel reported a massive net loss on Thursday, weighed down by impairment and restructuring charges, but forecast fourth-quarter revenue above estimates.
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 to Intel of about $300 million in the year-ago period.
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.
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.
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.
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.
In an interview, Intel finance chief David Zinsner said the company planned $12 billion to $14 billion in capital spending in 2025.
(Reporting by Arsheeya Bajwa in Bengaluru and Jeffrey Dastin and Max A. Cherney in San Francisco; Editing by Kenneth Li and Matthew Lewis)
Disclaimer: This report is auto generated from the Reuters news service. ThePrint holds no responsibilty for its content.