Intel working hard to address investor concerns, says CEO Pat Gelsinger
Gelsinger said though AI was a weak link in its server business, the company would soon launch Lunar Lake, “the most compelling AI PC product ever.”
Acknowledging it had been a “difficult few weeks” since Intel’s poor earnings report, CEO Pat Gelsinger pledged that the chipmaker was working hard to address investor concerns, CNBC reports.
“We respect some of the skepticism we’ve received from the market. We believe we’re up for the challenge,” he said.
Intel’s stock price fell 26% after the company’s quarterly earnings report, its worst day on Wall Street in over 5 decades. The shares are down 59% this year.
The company is struggling to make meaningful inroads into AI even as its market share in its core PC and data center business comes under a lot of stress.
Gelsinger said though AI was a weak link in its server business, the company would soon launch Lunar Lake, “the most compelling AI PC product ever.”
On the day of its earnings report this month, Intel announced it was laying off 15,000 employees and mulling cuts in its portfolio. Gelsinger said those efforts would pay off.
The company has put billions of dollars into keeping pace with TSMC but it has fewer options because of a slowdown in its business. Once the semiconductor industry’s leader, Intel trails the Taiwanese chipmaking giant in most chip parameters, including cost and power efficiency.
Earlier, Reuters reported, quoting sources, that semiconductor industry veteran Lip-Bu Tan’s sudden resignation from Intel’s board came after differences with Gelsinger and other directors over the US company’s “bloated workforce, risk-averse culture and lagging artificial intelligence strategy.”
Intel reported a net loss of USD 1.6 billion for the April to June quarter compared to a net profit of USD 1.47 billion for the same period last year.
