Intel, the chip giant, reported a loss of $2.8 billion (more than €2.5 billion) in the first quarter of 2023. Despite this, the company is optimistic about the future and its shareholders are seeing potential opportunities, with positive results on the stock market.
The decline in the PC market has been ongoing since the start of this year, as previously reported. With the high demand for chips and other PC components during the pandemic now subsiding, availability has become more widespread. As such, Intel had low expectations for the first quarter, but the results were not as bad as anticipated.
Intel’s CEO Pat Gelsinger commented that there is “steady progress” in the data center market, with the company’s turnover of $11.7 billion (€10.6 billion) exceeding the expected $11.1 billion (€10 billion). Gelsinger also highlighted the company’s investment in its own chip production, known as IDM 2.0, as well as its collaboration with British chip designer Arm.
Intel believes that the worst of the computer market is now behind them. Gelsinger stated that there is “increasing stability in the PC market due to the expected correction in inventories.” However, the network and edge divisions are still experiencing a significant decrease in demand (30 percent). This has led Intel to downsize its offerings, which it has been working on for two years.
