CEO Gelsinger Says Uptake ‘Slower Than We Anticipated’

[Pelican Press 0]

This is the hidden content, please

• Sign In
• or
• Sign Up

CEO Gelsinger Says Uptake ‘Slower Than We Anticipated’

Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below.

Intel Corp. (NASDAQ:

This is the hidden content, please

• Sign In
• or
• Sign Up

) has a Gaudi problem on its hands – the chipmaker revealed that its AI accelerator won’t even make $500 million in 2024, falling short of

This is the hidden content, please

• Sign In
• or
• Sign Up

of $1 billion to $2 billion.

What Happened: Gelsinger revealed during Intel’s third-quarter earnings call that the Gaudi AI accelerator program will fall short of revenue targets due to a transition from second to third generation.

“The overall uptake of Gaudi has been slower than we anticipated as adoption rates were impacted by the product transition from Gaudi 2 to Gaudi 3 and software ease of use,” Gelsinger said.

Don’t Miss:

“As a result, we will not achieve our target of 500 million in revenue for Gaudi in 2024. That said, taking a longer term view, we remain encouraged by the market available to us.”

Subscribe to the 

This is the hidden content, please

• Sign In
• or
• Sign Up

 to get all the latest tech developments delivered to your inbox.

This comes at a critical time for Intel – the iconic chipmaker’s stock is down nearly 55% in 2024 so far, which has drawn attention from rival Qualcomm Inc. (NASDAQ:

This is the hidden content, please

• Sign In
• or
• Sign Up

), which is

This is the hidden content, please

• Sign In
• or
• Sign Up

.

While it is not clear if this will eventually materialize, it points to a weak phase that Intel is going through.

Three of the biggest chip makers – Nvidia Corp. (NASDAQ:

This is the hidden content, please

• Sign In
• or
• Sign Up

), Intel, and Advanced Micro Devices Inc. (NASDAQ:

This is the hidden content, please

• Sign In
• or
• Sign Up

) – all have their respective data center business segments which have gained traction in 2023.

See Also: Commercial real estate has historically outperformed the stock market, and

This is the hidden content, please

• Sign In
• or
• Sign Up

s 1% return boost today!

While Intel led in 2022, the company’s data center revenue started declining in 2023, coinciding with Nvidia’s rise. On the other hand, 2022 and 2023 were both lukewarm for AMD, but it started gathering pace in the fourth quarter of 2023.

Here’s how Nvidia, Intel, and AMD’s data center business has performed since 2022.

*******

Nvidia

Intel

AMD

Q1 2022

$3.8B

$6.1B

$1.3B

Q2 2022

$3.8B

$4.7B

$1.5B

Q3 2022

$3.8B

$4.4B

$1.6B

Q4 2022

$3.6B

$4.6B

$1.7B

Q1 2023

$4.3B

$3.7B

$1.3B

Q2 2023

$10.3B

$4.0B

$1.3B

Q3 2023

$14.5B

$3.8B

$1.6B

Q4 2023

$18.4B

$4B

$2.3B

Q1 2024

$22.6B

$3B

$2.3B

Q2 2024

$26.3B

$3B

$2.8B

Q3 2024

TBA

$3.3B

$3.5B

Source: Nvidia, Intel, and AMD | Nvidia’s Q3 2024 results have not been announced yet.

Story Continues

Nvidia Rides AI Boost: Unsurprisingly, Nvidia’s stock has also massively benefited from its dominance in AI chips – the Jensen Huang-led company has risen to the top, dethroning Apple on multiple occasions to become the world’s most valuable company by market capitalization.

Nvidia’s current market capitalization stands at $3.256 trillion, while Intel’s is $92.73 billion and AMD’s is $233.8 billion.

Gelsinger maintained an optimistic

This is the hidden content, please

• Sign In
• or
• Sign Up

, saying “We remain encouraged by the market available to us. There is a clear need for solutions with superior [total cost of ownership] based on open standards, and we are continuing to enhance the Gaudi value proposition.”

For the quarter that just ended, Intel reported $13.28 billion in revenue, beating Street estimates of $13.02 billion.

Check out more of Benzinga’s Consumer Tech coverage by 

This is the hidden content, please

• Sign In
• or
• Sign Up

.

Read Next:

Photos courtesy: Shutterstock

This article

This is the hidden content, please

• Sign In
• or
• Sign Up

originally appeared on

This is the hidden content, please

• Sign In
• or
• Sign Up

This is the hidden content, please

• Sign In
• or
• Sign Up

#CEO #Gelsinger #Uptake #Slower #Anticipated

This is the hidden content, please

• Sign In
• or
• Sign Up

This is the hidden content, please

• Sign In
• or
• Sign Up