Intel has provided a better-than-expected revenue forecast for the current period, providing some optimism to investors awaiting a turnaround under new chief executive Lip-Bu Tan. The company projects third-quarter sales of between $US12.6 billion and $US13.6 billion, according to a statement released on Thursday (Friday AEST). This figure surpasses the average analyst projection, which was at the lower end of that range. Intel is a major technology company that designs, manufactures, and sells computer components and related products.
The improved outlook is partially attributed to a resurgence in the personal computer industry. This increase in demand is driven in part by manufacturers increasing their inventories in anticipation of potential tariff increases. However, Intel continues to face significant challenges, including losing market share to competitors and struggling to attract clients to its foundry business, which produces chips for external customers. Intel is one of the world’s largest semiconductor chip manufacturers.
Additionally, the company lags in offering products to meet the extensive demand for artificial intelligence systems. These ongoing issues highlight the complexities of Intel’s current position as it navigates a rapidly evolving technology landscape. Despite these hurdles, Intel’s stock experienced a rise of approximately 2 per cent in extended trading following the release of the second-quarter results.
Year-to-date, Intel’s stock is up by 13 per cent. While this growth aligns with the broader chip industry, it remains behind the performance of key competitors such as Nvidia and Advanced Micro Devices. The company’s future performance will likely depend on its ability to address its competitive disadvantages and capitalise on emerging opportunities in the tech sector.