Intel’s big bet on AI chips is facing a rough patch. Just a year after CEO Pat Gelsinger promised investors a \"pipeline of opportunities\" worth over $1 billion for its Gaudi AI accelerators, the company has scrapped its 2024 sales forecast ⚠️. The tech giant initially aimed to sell $500 million worth of these chips but later doubled down—only to walk back expectations this week.
Why the stumble? Analysts point to delays in software compatibility and a rushed transition between chip generations. While rivals like Nvidia 🚀 dominate the AI hardware race, Intel’s stock has plunged over 50% this year, despite a 5% bump after better-than-expected quarterly revenue.
Gelsinger remains optimistic, saying customers show \"good early interest\" in the latest Gaudi chips. But with Nvidia’s GPUs powering tools like ChatGPT, some experts wonder: Is Intel too late to the AI party? 🎉
Here’s the kicker: Intel’s third-quarter revenue hit $13.3 billion, but it still reported a staggering $16.6 billion loss 💸. Investors like Running Point Capital’s Michael Ashley Schulman worry Gelsinger might be \"exaggerating progress\" as the company juggles cost-cutting and AI ambitions.
Bottom line: In the high-stakes AI chip wars, Intel’s comeback story isn’t over—but the pressure is on. 🌟
