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The
stock has fallen around 30% so far this year as Intel trails
rival chip companies like Nvidia in producing advanced
artificial intelligence (AI) chips and components.
Intel forecast second-quarter revenue of $12.5 billion to $13.5
billion, compared with analysts' average estimate of $13.57
billion, according to LSEG data.
"While we believe they are doing everything they can to try to
repair things, it is clear that the company is profoundly
broken, and it will take years to see the fruits of their
(currently exhaustive) labor," Bernstein analysts said in a
note.
Intel is planning a $100 billion spending spree across four U.S.
states to build and expand factories. It also unveiled a new AI
chip earlier this year in an effort to keep up with competition.
Businesses have prioritized spending on advanced and speedy AI
server chips, hurting demand for Intel's central processing
units (CPUs), which have been the mainstay chip powering data
centers for decades.
However, the company is optimistic that a fresh upgrade cycle
for personal computers around a new version of Microsoft's
Windows operating system will help PC sales in the second half
of the year. That could translate to more demand for the Intel
chips used in those devices.
The company's report on Thursday contrasted strong results from
Microsoft and Alphabet-owned Google, which are clients of AI
chip leader Nvidia and also design in-house chips for their data
centers.
(Reporting by Zaheer Kachwala in Bengaluru; Editing by Devika
Syamnath)
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