Intel Data Spikes Chip Stocks amid PC Market Slump End

On Friday, shares of Intel went up by 7.00% after the chipmaker reported a surprisingly robust quarter indicating a turnaround in finances.

Previously, it dealt with a margin-reducing struggle due to dropping personal computer sales and an intensely competitive data center market.

The firm’s unexpected second-quarter revenue, strong earnings, and margin estimates hint at the end of the PC market slump. Also, it boosted the growth in its stock and the wider chip sector.

According to experts, the turnaround of Intel is finally taking place. They added that they anticipate improving quarters for the company and many other chipmakers.

Moreover, the firm is slowing down behind its rivals, such as TMSC of Taiwan and Nvidia. Both their margins and market value were trailing. Their PC market headwinds and tight competition in the data center negatively affected business.

On the other hand, the data was brought by the surging artificial intelligence (AI) market. Intel missed the boost due to a minor presence in graphics-processing units. 

Moreover, its AI and data centers business narrowed by 15.00% in the latest quarter. According to CEO Pat Gelsinger, the slump in the CPU market would continue until the year’s second half.

He added that the chipmaker has sufficient customer orders to sell around $1.00 billion of its AI chips.

Ericsson and Intel to Collab on Custom 5G Chip

Intel Corporation reported that it will work with the Swedish telecommunications device maker Ericsson. They plan on creating a custom chip for its 5G networking gear.

The chipmaker was knocked off its lead in making the smallest and most power-efficient semiconductors. Its CEO announced a plan to recover its lead and improve by packing five generations of chip manufacturing advances.

In addition, Intel mentioned that the new Ericsson chip will utilize its 18A manufacturing technology. Also, it is one of the first chips from outside customers to use the technology.

On the other hand, both companies did not give enough details on when the chip will roll out in the market. However, the chipmaker said its 18A technology will be ready in 2025.