Intel CEO Pat Gelsinger recently stated that the Core Ultra laptop chip is selling well, despite the fact that Intel’s latest forecasts fell below expectations. During the latest earnings call, Intel predicted revenues for the next quarter to be between $12.5B to $13.5B, lower compared to what investment analysts had anticipated. Although revenues for the first quarter in 2023 increased by 9%, analysts tend to be disappointed when a company fails to meet their expectations.
Gelsinger expressed confidence in Intel’s roadmap going forward. He mentioned engaging with customers and OEM partners and seeing strength across the board, driven by unique product positioning and market characteristics such as AI PC and a Windows upgrade cycle in the second half of the year. He highlighted the success of Core Ultra, specifically mentioning that Intel expected to double the number of Core Ultra CPUs shipped in Q2 compared to Q1. The efficiency in manufacturing Meteor Lake, Intel’s latest laptop chip, played a significant role in achieving this growth.
Despite the positive outlook, there are concerns regarding Intel’s ability to deliver on its promises. The claim of five new chip production nodes in four years sounds promising, but the actual output and progress are questionable. The implementation of Meteor Lake and other advanced nodes like Intel 4, Intel 20A, and Intel 18A may not ramp up to high-volume production levels until later years, as indicated by Intel’s own foundry forecasts. This raises doubts about the readiness and scalability of these new nodes for mass production.
The release of products like Arrow Lake and Panther Lake may serve as test chips for Intel’s new nodes rather than significant drivers of high-volume production. While Intel continues to showcase progress and achievement in its roadmap, the actual impact on the market may take several years to materialize. The upcoming years will be crucial for Intel to prove its capabilities and ability to compete in the rapidly evolving semiconductor industry.
Overall, Intel’s Core Ultra laptop chip sales are a positive sign of growth and potential, but it also reflects the challenges and uncertainties faced by the company in delivering on its promises. The future success of Intel will depend on its ability to navigate these challenges and establish a strong presence in the competitive market landscape.
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