Intel Corp. is expected to experience a period of stabilization in the coming year as it begins to capitalize on its investment in artificial intelligence (AI). This could potentially provide a surprising boost to its data-center business.
During the Citi Global Technology Conference in New York, Intel’s Chief Financial Officer, David Zinsner, revealed that the company had witnessed better-than-expected sales in the data-center sector following a previous quarter with record losses. Intel has been playing catch-up with companies like Nvidia Corp. and Advanced Micro Devices Inc., who have been reaping the benefits of the AI-chip frenzy.
Zinsner acknowledged that Intel has already experienced sales growth in its data-center products due to the increased demand for infrastructure capable of handling AI workloads. However, he doesn’t anticipate substantial sales in the hundreds of millions of dollars until 2024.
In a previous interview, an analyst emphasized Intel’s significant potential in the AI sector. Zinsner also concurred, stating that 2024 holds promise for meaningful growth. Nevertheless, he cautioned that the inventory reductions in the data-center business that plagued the company over recent quarters are likely to persist throughout this year.
Zinsner expressed optimism about the future, suggesting that once the inventory issue is resolved, the data-center business will experience a significant surge akin to the current growth witnessed in Intel’s PC business. He concluded by reiterating the company’s anticipation of substantial growth from AI in 2024.
