Intel (INTC) has released its Q1 earnings report, revealing a 36% decline in revenue for the quarter, largely due to a steep decline in both PC and datacenter sales. PC revenue was down by 38%, while datacenter revenue fell by $39%. Despite these declines, Intel beat analysts’ expectations on revenue and lost less per share than anticipated. Shares rose by more than 1% following the report. Intel CEO Pat Gelsinger said that the company had hit key execution milestones in its data center roadmap, but remained cautious on the macroeconomic outlook. The company is currently in the midst of a massive turnaround campaign by Gelsinger, who is working to regain lost market share from rival AMD amongst other manufacturers.
The effort, however, is being hamstrung by the company’s poor quarterly performance and relative lack of exposure to the AI boom compared to Nvidia. Intel is attempting to steer the chip giant towards a new era of growth by building out new fabrication facilities in the U.S. and announcing a multi-generation collaboration with chip designer Arm. However, the company’s larger problem might be the slowdown in the overall PC market, which has seen a significant decline in worldwide PC shipments.
