Intel has revised its forecast for 2024, scrapping the expectation of over $500 million in sales of its Gaudi accelerator chips, which enhance AI application performance. CEO Pat Gelsinger linked the slower adoption to software issues and the transition between chip generations. Despite a positive total revenue forecast that boosted Intel’s shares by about 5%, the company’s stock remains over 50% lower for the year due to missed opportunities in the AI market. Following the surge in demand for AI technologies after the launch of ChatGPT, Gelsinger had initially predicted a higher sales target of at least $1 billion. However, by January, Intel suggested potential AI-chip deals could exceed $2 billion, only to retract the $500 million revenue forecast in April. Gelsinger expressed optimism about the long-term market for AI, while analysts raised concerns about Intel’s strategy and competitiveness in the AI sector. Despite reporting third-quarter revenue of $13.3 billion, Intel also faced a significant $16.6 billion loss due to various charges. Some analysts remain skeptical about Gelsinger’s claims regarding future prospects and operational control. Overall, while Intel aims for a turnaround, doubts linger about its ability to capitalize on the AI boom.
