Intel expressed optimism for its PC and server businesses, predicting higher-than-expected revenue for the current quarter, though noting ongoing challenges. Shares rose over 7% in after-hours trading, trimming some gains after the results were posted.
Despite missing out on the surge in AI chip demand dominated by Nvidia and AMD, Intel’s third-quarter revenue exceeded estimates. However, the company posted a significant net loss due to restructuring costs. CFO David Zinsner noted Intel is “making progress” on profitability but acknowledged more work remains to meet targets.
Intel’s Client Computing Group, which makes PC chips, saw a 7% revenue decline to $7.3 billion, slightly below analyst expectations. Still, demand for traditional server chips may strengthen by mid-2024 after several quarters of slower sales as investments pivoted to AI. Intel’s data center revenue rose 9% to $3.3 billion, beating expectations.
The company projects fourth-quarter revenue between $13.3 billion and $14.3 billion, with the midpoint above analysts’ average forecast of $13.66 billion. CEO Pat Gelsinger shared plans for Intel’s advanced 18A chip production to begin in late 2025, with the majority produced in-house.
