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Intel Corp. (NASDAQ:INTC) has a problem with Gaudi – the chipmaker revealed that its AI accelerator won’t even make $500 million in 2024, lower than Gaudi’s. CEO Pat Gelsinger target from 1 to 2 billion dollars.
What happened: Gelsinger revealed during Intel’s third-quarter earnings conference call that Gaudi’s AI accelerator program will fail to meet revenue targets due to a transition from second to third generation .
“Overall adoption of Gaudi has been slower than expected, as adoption rates have been affected by the product transition from Gaudi 2 to Gaudi 3 and the ease of use of the software,” Gelsinger said.
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“As a result, we will not reach our target of 500 million in revenue for Gaudi in 2024. That said, taking a longer-term view, we remain encouraged by the market before us.”
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It comes at a critical time for Intel: The iconic chipmaker’s shares are down nearly 55% in 2024 so far, which has caught the attention of its rival. Qualcomm Inc. (NASDAQ:QCOM), which is would consider a takeover of Intel.
While it’s unclear if this will eventually come to fruition, it does indicate a phase of weakness that Intel is going through.
Three of the biggest chipmakers – Nvidia Corp. (NASDAQ:NVDA), Intel and Advanced Micro Devices Inc. (NASDAQ:AMD) – all have their respective data center business segments that have gained traction in 2023.
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While Intel led in 2022, the company’s data center revenue began to decline in 2023, coinciding with Nvidia’s rise. On the other hand, 2022 and 2023 were both lukewarm for AMD, but they started to pick up pace in Q4 2023.
Here’s how Nvidia, Intel and AMD’s data center businesses have performed since 2022.
|
Period |
Nvidia |
Intel |
AMD |
|
Q1 2022 |
$3.8 billion |
$6.1 billion |
$1.3 billion |
|
Q2 2022 |
$3.8 billion |
$4.7 billion |
$1.5 billion |
|
Q3 2022 |
$3.8 billion |
$4.4 billion |
$1.6 billion |
|
Q4 2022 |
$3.6 billion |
$4.6 billion |
$1.7 billion |
|
Q1 2023 |
$4.3 billion |
$3.7 billion |
$1.3 billion |
|
Q2 2023 |
$10.3 billion |
$4.0 billion |
$1.3 billion |
|
Q3 2023 |
$14.5 billion |
$3.8 billion |
$1.6 billion |
|
Q4 2023 |
$18.4 billion |
4 billion dollars |
$2.3 billion |
|
Q1 2024 |
$22.6 billion |
3 billion dollars |
$2.3 billion |
|
Q2 2024 |
$26.3 billion |
3 billion dollars |
$2.8 billion |
|
Q3 2024 |
To be determined |
$3.3 billion |
$3.5 billion |
Source: Nvidia, Intel and AMD | Nvidia’s third quarter 2024 results have not yet been announced.