dailyloe.com – Intel (INTC) will report its first quarter earnings after the bell on Thursday, according to Yahoo Finance. AI continues to drive increasing demand for the company’s chips. Intel missed out on the initial AI boom due to its lack of chips capable of running AI models. It also lacked chips from Nvidia (NVDA).
Nvidia took full advantage of its AI chip lead, transforming itself into a nearly $5 trillion company. Intel is finally on the cusp of grabbing its own piece of the AI bonanza. That is because AI agents are becoming more popular. AI agents are semi- or fully autonomous AI bots that can perform tasks on users’ behalf.
Central processing units (CPUs) like the ones Intel makes are becoming increasingly important to data center companies and hyperscalers. While AI models still largely run on GPUs or similar offerings from Amazon (AMZN) or Google (GOOG, GOOGL), the tasks that AI agents perform rely on CPUs. Those tasks include browsing websites or searching for data in spreadsheets. That is making the humble chip far more popular.
For Q1, Intel is expected to report earnings per share (EPS) of $0.01 on revenue of $12.36 billion, according to Bloomberg analyst consensus data. The company saw EPS of $0.13 and revenue of $12.67 billion in the same quarter last year. The company’s Data Center and AI business is expected to generate revenue of $4.41 billion, up 6.8% year over year.
During its fourth quarter earnings call, Intel noted it faced supply constraints on its chips due to high demand. The company anticipates that to improve after Q1. Intel is also contending with the fallout from the broader memory chip shortage. That shortage is suppressing PC sales.
