:Intel shares climbed more than 12 per cent in extended trading on Thursday after the chipmaker forecast current-quarter revenue above estimates and beat expectations for the third quarter.
Intel reported a massive net loss on Thursday, weighed down by impairment and restructuring charges.
The company has largely missed out on a boom in investments in speedy, advanced AI chips for data centers as businesses double down on adopting generative AI technology – a market dominated by Nvidia, followed by rival AMD.
In an interview with Reuters, Intel finance chief David Zinsner said the company was “making progress” on its profitability but that it had “a lot of work to do” to achieve the targets it has set.
Intel reported a net loss of $16.6 billion for the third quarter, excluding losses attributable to certain noncontrolling interests. That compares with a net profit attributable to Intel of about $300 million in the year-ago period.
As one of the largest makers of PC chips, Intel has benefited as the rollout of on-device AI features and a fresh Windows update cycle have renewed demand for PCs after a years-long slump, helping the company surpass Wall Street’s low expectations.
Revenue in Intel’s Client Computing Group – which includes its PC chips for desktop and laptop computers – fell 7 per cent to $7.3 billion. Analysts estimated the client segment would shrink to $7.38 billion.
The company expects revenue to be between $13.3 billion and $14.3 billion for the current quarter, the midpoint of which is above analysts’ average estimate of $13.66 billion according to data compiled by LSEG.
Analysts also expect demand for traditional server chips made by Intel – its mainstay data-center semiconductors – to pick up in the second half of the year after several quarters of soft demand as investment is funneled to AI chips.
For the data center segment,
