Intel set for sharp drop in quarterly revenue as US chip maker struggles to bounce back

The once-iconic American semiconductor giant is expected to report this week an 8 per cent decline in quarterly revenue to US$13.02 billion

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Intel’s shareholders have turned their focus on chief executive Pat Gelsinger’s attempts to salvage the chip maker’s lost market lead. Photo: Shutterstock

Published: 8:38pm, 29 Oct 2024Updated: 8:45pm, 29 Oct 2024

Intel is expected to report its biggest quarterly revenue drop in five quarters on Thursday, potentially signaling more erosion of data centre and personal computer (PC) market share for the once-iconic American semiconductor giant.

Shareholders have turned their focus on chief executive Pat Gelsinger’s attempts to salvage Intel’s lost market lead, as losses mount at its contract-manufacturing business. The company has also failed to capitalise on the generative artificial intelligence (AI)-driven chip boom, after a series of missteps including passing on an investment in ChatGPT creator OpenAI.

With Wall Street expecting Intel to report an 8 per cent decline in revenue to US$13.02 billion, according to data from LSEG compiled as of October 26, investors want Gelsinger to provide clarity on his plans to get the company’s latest manufacturing technology up and running.

A disastrous quarterly report in August had raised some doubts over Gelsinger’s strategy to revive the struggling chip maker.

Intel chief executive Pat Gelsinger holds a sample of a wafer during his keynote speech at the Computex 2024 trade show in Taipei on June 4, 2024. Photo: AFP

Rosenblatt Securities analyst Hans Mosesmann said Intel investors have two big questions: “Can it be fixed?” and “Who is it going to be fixed by?”