Intel has reported a revenue growth of 7.2% in its latest earnings call, signaling a positive turnaround for the chipmaker. The company anticipates that its revenue for the next quarter will exceed market predictions, driven largely by the rising demand for central processing units (CPUs).
Previously overshadowed by competitors like AMD and Nvidia, Intel is now capitalizing on the increasing popularity of agentic AI, which is reshaping the tech landscape. The firm attributes its recent success to lucrative partnerships, including significant deals with Tesla and SpaceX, and a strategic agreement with the U.S. government that granted it a 10% stake.
Experts note that CPUs are experiencing a resurgence, countering their previous relegation in favor of graphics processing units (GPUs). Intel CEO Lip-Bu Tan highlighted the efficiency of CPUs in tasks related to orchestration and data management, which are essential for the evolving needs of agentic AI systems. Analysts from Morgan Stanley predict a shift in the AI bottleneck from GPUs to CPUs, emphasizing the need for coordination capabilities in future AI applications.