On October 26th, after the U.S. stock market closed, chip giant Intel released its Q3 2023 financial report. The report showed that Intel's total revenue in the third quarter fell 8% year-on-year to $14.16 billion, marking the seventh consecutive quarter of declining sales, although it was still higher than the market expectation of $13.53 billion. In the second quarter, revenue had previously dropped 15% year-on-year, and the company expects revenue to return to growth in the fourth quarter. However, the sales of the Network and Edge Group (NEX), which includes IoT and other segments, fell 32% year-on-year to $1.5 billion. More importantly, the server chip division, named "Data Center and Artificial Intelligence," has yet to recover growth, with third-quarter revenue declining 10% year-on-year to $3.8 billion. Facing multiple competitive pressures, do you think Intel can turn the tide in the AI era?

On October 26th, after the U.S. stock market closed, chip giant Intel released its Q3 2023 financial report. The report showed that Intel's total revenue in the third quarter fell 8% year-on-year to $14.16 billion, marking the seventh consecutive quarter of declining sales, although it was still higher than the market expectation of $13.53 billion. In the second quarter, revenue had previously dropped 15% year-on-year, and the company expects revenue to return to growth in the fourth quarter. However, the sales of the Network and Edge Group (NEX), which includes IoT and other segments, fell 32% year-on-year to $1.5 billion. More importantly, the server chip division, named "Data Center and Artificial Intelligence," has yet to recover growth, with third-quarter revenue declining 10% year-on-year to $3.8 billion. Facing multiple competitive pressures, do you think Intel can turn the tide in the AI era?

In the AI era, can Intel win a comeback?

Intel's Q4 performance exceeded expectations, but weak guidance for Q1 led to a sharp decline in stock prices. CEO Chen Liwu admitted, "I am very disappointed that we cannot fully meet market demand." Despite strong demand for AI, particularly the critical role of CPUs in AI inference and orchestration driving a surge in orders from hyperscale cloud providers, the company is facing severe supply bottlenecks, with buffer inventory depleted, "orders without goods," and manufacturing yields not yet meeting internal standards

- Intel's Q4 earnings surpassed expectations, with revenues at $13.7 billion, but the lower-than-expected Q1 guidance, citing supply constraints and yield issues, led to a stock drop of over 10%.  
- The company has exhausted buffer inventory, leading to extreme supply tightness, especially as they pivot wafer production towards server products.  
- CEO Pat Gelsinger highlighted the increasing importance of CPU in AI workloads, emphasizing a strategic focus on improving manufacturing yields and capitalizing on the AI-driven demand across all sectors.

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Intel conference call: CPU demand surges but there are orders without inventory! CEO admits that inventory is depleted and yield rates are below standard, "I am very disappointed that we cannot meet the demand."