Attack on Nvidia

Intel at the back of the AI boom, fully committed to “Gaudi 3”

AI data centers rely on high-performance processors that are particularly good at carrying out many work steps simultaneously. So far, Nvidia has taken the lead here.

(Bild: TANATPON - stock.adobe.com)

The current lack of competitive special processors for artificial intelligence (AI) is slowing down Intel's growth. In addition, the contract manufacturing business for computer chips, in which the Group has high hopes, is not picking up speed. As a result, Intel presented an outlook below market expectations on Thursday, causing the share price to fall by almost nine percent.

Due to sluggish demand for classic processors for PCs and data centers, Intel forecast sales of 12.5 to 13.5 billion dollars and earnings of 0.10 dollars per share for the current quarter. Analysts had hoped for 13.57 billion dollars or 0.25 dollars per share. At 12.72 billion dollars, revenue for the first quarter also fell short of analysts' forecasts. The order business even shrank by ten percent.

A few weeks ago, the once world's largest chip manufacturer presented the special AI chip developed jointly with Alphabet subsidiary Google. The two companies want to use it to take market share away from global market leader Nvidia. According to experts, Nvidia currently dominates around 80 percent of the market. Intel CEO Patrick Gelsinger expects "Gaudi 3" to generate sales of more than 500 million dollars in the current year.