For the past two years, the AI industry’s spotlight has been almost entirely on the GPU. From training large models to running inference applications, the GPU has been the most closely watched core chip in the buildout of AI computing infrastructure. But as AI applications change shape, the importance of the CPU is returning. That is why Intel’s latest earnings report drew so much attention.
In a statement released today, Intel said third-quarter sales rose 21% to $16.5 billion, in line with analysts’ average expectations. For the quarter ended September 26, earnings per share were 52 cents, above analysts’ expectations of 41 cents. Revenue in its Data Center and AI segment reached $7.3 billion, up 78%, the strongest growth in 15 years. However, sales in the Client segment, which makes chips for personal computers, fell 5% to $8.1 billion.
Intel’s(INTC 0.00%↑) third-quarter gross margin (the percentage of revenue left after production costs) was 43%. This metric reflects how a company is performing in the costly and fiercely competitive chip manufacturing business. Intel expects its gross margin to narrow to 38% this quarter.
