Intel’s Performance Deviates from Expectations, AI Competition Fierce

Recently, large technology companies have released strong quarterly financial reports, but Intel’s performance has been surprising. Although its quarterly performance exceeded expectations, the guidance was far below expectations, sparking market concerns about Intel’s future. Investors are selling the stock one after another, questioning its prospects.
Intel’s predicament is not an isolated case. In the fields of artificial intelligence and the Internet of Things, many companies are facing similar challenges. With the rapid development of artificial intelligence technology, the demand for related hardware is also constantly increasing, but Intel’s performance in this field is not satisfactory.
Intel’s backwardness in the field of artificial intelligence is closely related to its market share in the GPU market. NVIDIA, with its leading position in the GPU field, has become the leader in the field of artificial intelligence infrastructure. Although Intel still holds about 75% of the data center computing market share, its market share in AI inference and applications lags far behind Nvidia.

However, Intel does not lack the opportunity to turn the tables. With the launch of the new generation of personal computers, AI will remain private on the device and be used to generate AI applications. This will provide users with an artificial intelligence experience with less latency, higher security, and efficiency, and make AI more user-friendly. Intel still has a competitive advantage in this area, and its strong channel cooperation and OEM business provide more possibilities for the company’s future development.
Although the market is full of doubts about Intel’s future, some optimistic reasons still exist. Firstly, the appointment of new CEO Pat Gelsinger has brought new hope and leadership style to Intel. He made a difficult decision to divest the company from low profit businesses and focus on mobile business and strategic alliances. At the same time, he is also committed to making Intel the national wafer factory of the United States and providing chip manufacturing services to other companies.
Secondly, Intel’s long-term partnership with channels is also one of its competitive advantages. From the perspective of design, distribution, and implementation, the dependence of channels on Intel is very high. Intel has been very successful in establishing strategic marketing, collaboration, and MDF plans, enabling partners to rely on Intel to deliver products and generate profits. This partnership will continue to bring stable revenue and market share to Intel in the coming years.
In addition, Intel’s growing OEM business has also brought new growth opportunities. As the United States and other Western countries seek to reduce their reliance on Asian foundries, Intel is seizing the opportunity to become one of the leading foundries. The company is not only committed to integrated manufacturing strategy, but also collaborates with companies such as Marvell Technology, Nvidia, Qualcomm, AMD, etc. to provide demand for artificial intelligence chips and non artificial intelligence chips. The establishment of this partnership will further drive Intel’s growth in the coming years.

Despite market doubts about Intel’s future, investors still need to be cautious about the stock. At least for now, Intel’s valuation is far lower than its competitors, and it still has a considerable market share and deep channel connections. In the field of artificial intelligence, although Nvidia holds a leading position, Intel still has the opportunity to regain market share by launching competitive products and services.