Intel Q1 Revenue Seen Slipping 1.9% to $12.42B Despite 6.8% AI Growth
Intel's Q1 revenue is expected to fall 1.9% to $12.42B with EPS down sharply as supply constraints pressure its server chip business, though its data center and AI segment should grow 6.8% to $4.41B. The company's update on its 18A manufacturing process could signal improvements in chip yields.
1. Q1 Revenue and Earnings Outlook
Investors expect Intel to report Q1 revenue of about $12.42 billion, representing a 1.9% decline year-over-year, while adjusted earnings per share are projected to fall sharply, highlighting ongoing margin pressures in a challenging environment.
2. Supply Chain Constraints and AI Demand
Bottlenecks in Intel's server chip business are constraining its ability to meet rising demand for AI infrastructure, with supply shortages anticipated to be most severe in the first quarter before gradually easing throughout the year.
3. Data Center and AI Segment Growth
Intel's data center and AI segment is forecast to grow 6.8% to $4.41 billion this quarter, driven by increased enterprise spending on AI services and computing power, underscoring the unit's strategic importance.
4. 18A Manufacturing Process Update
The upcoming update on Intel's 18A manufacturing process will provide insights into chip yield improvements, serving as a critical indicator of the company's progress in closing technology gaps with competitors.