Intel investors are bracing for earnings results Thursday, closely scrutinizing the company's progress in overcoming supply chain disruptions that hinder its ability to meet surging AI-driven demand. These constraints have limited chip production capacity, impacting the crucial server chips used alongside AI accelerators.
Analysts project a revenue dip for the first quarter, with significant drops in adjusted earnings per share. However, Intel's data center and AI segment is expected to show growth. The company has recently expanded its AI CPU partnerships, including with Google and Elon Musk's Terafab project.
Experts note that the increasing demand for CPUs in AI data centers provides a more stable revenue stream, independent of the volatile consumer PC market. Key investor focus will also be on the manufacturing yields of Intel's advanced 18A process, with expectations for improvements exceeding market forecasts.