Intel has some major opportunities in the arms race to power artificial intelligence, but its ability to hit the gas will be key.
Intel Corp. has some major opportunities in the arms race to power artificial intelligence, but its ability to hit the gas will be key.
Intel also has a lot on its plate, as it’s in the throes of creating a contract manufacturing business that it hopes will compete directly with Taiwan Semiconductor Manufacturing Co. TSM . The company cannot make any missteps as it is facing one of the biggest opportunities ahead of it in years — one that could transform its business in a major way.
Gelsinger did not specify at what point next year the new Gaudi3 AI chip is expected, but he said Intel will have some “very positive updates there in the future with both customers as well as expanded business opportunities.” Gelsinger also acknowledged some near-term “wallet focus” on AI accelerator chips, versus the general purpose CPU chips that Intel sells more of, which has been an area of concern on Wall Street. In that sense, Intel expects to see server CPUs modestly decline on a sequential basis in the third quarter before showing recovery in the fourth quarter.
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