Intel's ambitious plans for its AI-focused Gaudi accelerator chips have fallen short, leading the chipmaker to revise its sales forecasts for 2024. Despite reporting a robust third-quarter revenue of $13.3 billion, the company's stock remains down over 50% for the year, highlighting the challenges Intel faces in the competitive AI market.
CEO Pat Gelsinger announced the scrapping of the previous projection of over $500 million in Gaudi chip sales, attributing the shortfall to software integration issues and the transition between chip generations. The Gaudi chips were designed to accelerate AI applications, positioning Intel as a key player against rivals like Nvidia. However, supply constraints from contract chipmaker TSMC have also hindered Intel's ability to meet its targets.
Analysts have expressed skepticism about Intel's long-term prospects in the AI sector. Michael Ashley Schulman of Running Point Capital suggests that while Intel's cost-cutting measures indicate potential for a rebound, there are concerns about the CEO's control over operational aspects and customer relationships.
Despite the setback with Gaudi chips, Intel remains optimistic about the AI market's future. Gelsinger emphasized that the company is taking a longer-term view and continues to see opportunities for growth. As Intel navigates its turnaround strategy, the tech community watches closely to see if the chipmaker can regain momentum in the fast-evolving AI landscape.
Reference(s):
cgtn.com
