Quarter after record loss, Intel reports profit again

Intel made a profit of $1.5 billion in the past quarter. A quarter earlier, the company had a record loss of $2.8 billion, due to disappointing demand for CPUs. The company says previously announced cuts helped its bottom line.

Revenue from Intel’s two main businesses, Client Computing Group and Data Center and AI, decreased by respectively 12 and 15 percent. This came according to Intel partly due to strong competition in the data center and AI branch and because OEM customers of Intel’s processors wanted to reduce their own inventories. As a result, they purchased fewer chips from Intel.

Despite the persistently declining turnover, Intel is satisfied with the past quarter. The company had expected a turnover of at least $ 11.5 billion and at $ 12.9 billion it is above. The company also expects the PC market to continue to recover in the next six months and expects revenue of $12.9 billion to $13.9 billion for the coming quarter.

Intel reports that most of the company’s plans and projects are still going according to plan, including the Meteor Lake laptop processors that should be released later this year. This processor will have an npu chip for AI tasks. CEO Pat Gelsinger says that Intel will eventually “build AI into every product we make,” both in data center products and consumer CPUs.