“ “I think as we go into 2024, I think there’s a real opportunity for us to see meaningful growth from AI.” ”
The coming yr may very well be one among stabilization for Intel Corp. because it begins to acknowledge materials positive factors from artificial-intelligence spending, which may give its data-center enterprise a shock tailwind.
That’s what Intel
INTC,
Chief Financial Officer David Zinsner instructed an viewers Wednesday on the Citi Global Technology Conference in New York, including that one of many massive surprises of the yr has been better-than-expected data-center gross sales following 1 / 4 wherein the chip maker reported its largest quarterly loss on report.
The chip big is in search of to proper a foundering ship after falling behind firms like Nvidia Corp.
NVDA,
and Advanced Micro Devices Inc.
AMD,
that are broadly seen as the highest beneficiaries within the AI-chip gold rush.
Zinsner stated that whereas Intel was already seeing gross sales tailwinds for data-center merchandise from a fevered buildout of infrastructure designed to deal with AI workloads, the corporate doesn’t count on “material” gross sales — these within the tons of of tens of millions of {dollars} — till 2024.
Back in June, one Wall Street analyst was making a case for Intel’s “material AI opportunity.”
“I think that next year we’ll be material,” Zinsner stated Wednesday, including that it will probably take months to get accelerator programs into place.
Zinsner, nonetheless, cautioned the stock reductions within the data-center enterprise that the corporate has suffered from over the previous a number of quarters had been “likely to continue through the rest of this year.”
“We do expect that to be down quarter-over-quarter, but I think it’s safe to say that it’s at least tracking better than we had anticipated,” the CFO stated.
After that, the data-center enterprise may have the “opportunity for a tailwind” like the corporate’s PC enterprise is seeing proper now, the place “instead of bleeding through inventory, our customers now have to buy everything from us.”
“I think as we go into 2024, I think there’s a real opportunity for us to see meaningful growth from AI,” Zinsner stated.
Source web site: www.marketwatch.com
