Key Takeaways
- Intel shares jumped on current quarter guidance.
- CFO David Zinsner said sales will be at the high end of the firm’s previous outlook.
- The chipmaker said it expects to benefit from booming artificial intelligence product demand.
Intel (INTC) was the best-performing stock in the Dow after the chipmaker said current quarter revenue is on track to be at the high end of its guidance.
CFO David Zinsner told a TD Cowen conference that Intel sales would reach $12 billion to $12.5 billion for the three months ending in July. Previously, Intel predicted revenue of $11.5 billion to $12.5 billion.
Zinsner added that Intel is poised to take advantage of the soaring demand for artificial intelligence (AI), explaining that its foundry services could produce wafers for customers who make AI products.
CEO Pat Gelsinger explained during the company’s first quarter earnings presentation that while AI development is now centered on large language models in the cloud, “AI deployment will rapidly migrate to inference as the dominant AI workload, and adoption will quickly expand outward to edge and client, all areas that play to our strength.”
Intel shares had slumped to a nine-year low in February, but have rallied back and are up about 20% this year.
YCharts.
Source: https://www.investopedia.com/intel-shares-rise-on-upbeat-sales-forecast-7506654?utm_campaign=quote-yahoo&utm_source=yahoo&utm_medium=referral&yptr=yahoo