Intel Struggles with Losses but Forecasts Revenue Growth

Intel recently reported a massive net loss, impacted by write-downs and restructuring costs. Nevertheless, the chip giant surprised with an optimistic outlook for the fourth quarter. It forecasts revenues exceeding analysts' expectations, which led to an eight percent rise in the stock during after-hours trading. The advance of high-performance AI chips for data centers, an area where Nvidia and AMD notably dominate, is largely bypassing Intel. Despite a net loss of $16.6 billion in the third quarter, Intel benefited from demand for PC chips. In this segment, the implementation of AI features and a new update phase of Windows contributed to a market revival. For the current quarter, Intel expects revenue between $13.3 billion and $14.3 billion. This would exceed analysts' expectations, which on average stand at $13.66 billion. Additionally, an increase in demand for conventional server chips is anticipated – Intel's strongest product in the data center semiconductor sector. However, competition from AMD remains strong, as it now holds a higher market capitalization and represents the closest competition to Nvidia in the AI graphics processors field. Chief Financial Officer David Zinsner also revealed that Intel plans investments of $12 to $14 billion for 2025.