Having experienced two consecutive quarterly losses, Intel bounced back to profitability in the second quarter and is looking positively toward the second half of the year. Intel CEO Pat Gelsinger expressed optimism about the company's future in a conversation with Yahoo Finance Live, stating that the worst is likely over for the PC market, and the upward revision of the Q3 guide indicates a brighter future. Meanwhile, Gelsinger expects the upcoming Meteor Lake CPU family to be Intel's new 'Centrino Moment.'
"I do think we have […] seen the worst," Gelsinger said. "Obviously, the PC inventory levels are now healthy again. And we are seeing the demand signals. You know, we think we still have a little bit of inventory on the networking and the datacenter to fight through in the third quarter of the year. But I really think the worst is behind us at this point."
The head of Intel attributed his positive outlook to expected improvements in the PC business, noting that Intel's inventory levels are now healthy, which is why the chip giant now expects quarter-on-quarter improvements due to inventory level adjustments.
Gelsinger also highlighted the upcoming introduction of Intel's codenamed Meteor Lake processor, the company's first client CPU to use a multi-chiplet design and a built-in AI accelerator to boost applications like real-time language translation, transcription, and video effects, among other things.
Interestingly, Gelsinger sees AI accelerator integration as the company's new Centrino moment. Way back in 2003, Intel was the only company to offer a fully integrated PC platform with Wi-Fi and an appropriate software stack. By contrast, AMD and Apple today have processors with integrated AI accelerators and while software support for AMD's unit may be scarce, Apple's Neural Engine AI capabilities are used by its own software.
"We see that being like the Centrino moment for bringing Wi-Fi into the PC two decades ago," said Gelsinger. "We see this AI PC as ushering in a new class of applications, major application upgrades, and ISV excitements. We are leading the way with our Meteor Lake product in the second half of this year. So healthy and great opportunity in the future."
Gelsinger also addressed Intel's position in the datacenter AI market, acknowledging that the company has not been as proactive as it should have been. He recognized Nvidia as a strong competitor that has led the way in this space and currently dominates the arena. Yet, he mentioned that Intel has a robust roadmap for its Gaudi product line, which is gaining market interest. As it turns out, the company already has Gaudi 3 in the lab, which is twice as fast as Gaudi 2.
"Our Gaudi product line really starting to get interest in the marketplace, customer pipeline is a building very rapidly, and we have a very robust roadmap," said Gelsinger. "Gaudi 2 is shipping in volume today. Gaudi 3, I just received the first silicone it. So it is sort of like a 2x level of capability. And, you know, we will be launching [Gaudi 3] for volume shipments next year. And then our 2025 product is already well underway."
He expressed confidence that the company will receive more credit for its AI efforts as they continue to execute its plans. Yet, he refrained from commenting on the prospects of the company's CPUs and compute GPUs in the AI space.
