Intel posted a surprise Q2 profit boosted by growth in AI-related chip sales

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Shares of the world’s largest chipmaker, Intel (NASDAQ: INTC) jumped almost 8% on Friday after the company reported a surprise profit for the quarter that ended July 1. The company's quarterly revenues were $12.9 billion, marking a 15% decline compared to last year but that beat the projection of $12.13 billion.

• Earnings per share: $0.13 vs. -$0.03 expected
• Revenue: $12.9 billion vs. $12.1 billion expected

The company turned to profit for the first time in 2023, after witnessing both revenue and profits slump in the previous two quarters. The better-than-expected earnings growth was boosted by the sales of AI-related chips and the improvement in the PC market.

“Our strategy is to democratise AI, scaling it and making it ubiquitous.” - Intel CEO Pat Gelsinger​

“Strong execution, including progress towards our $3 billion in cost savings in 2023, contributed to the upside in the quarter,” Intel CEO Pat Gelsinger said. “AI is going to be in every hearing aid in the future, including mine, whether it’s a client, whether it’s an edge platform for retail and manufacturing and industrial use cases, whether it’s an enterprise data center, they’re not going to stand up a dedicated 10-megawatt farm.” – Gelsinger added.

Intel is about to launch Meteor Lake, its first consumer chip with a built-in neural processor for machine learning tasks. Meanwhile, the chipmaker anticipates a modest decline in data centre chip sales for the third quarter, followed by a recovery in the fourth quarter. For Q3 guidance, Intel said it expects to earn an adjusted 20 cents a share on sales of $13.4 billion. Wall Street analysts anticipate earnings of $0.16 per share on revenues of $13.23 billion.

Check out the original article here - https://gulfbrokers.com/en/intel-po...it-boosted-by-growth-in-ai-related-chip-sales