Intel (INTC) is set to release its first-quarter earnings after the market close on Thursday, with artificial intelligence continuing to fuel rising demand for the company’s chips.

The company missed the early wave of the AI boom due to its lack of specialized chips capable of efficiently running AI models, an area where rival Nvidia (NVDA) established a strong lead, News.Az reports, citing foreign media.

Nvidia has since capitalized on that advantage, growing into a nearly $5 trillion company, while Intel is now working to secure its share of the expanding AI market.

Intel’s renewed opportunity is linked to the growing adoption of AI agents—semi- or fully autonomous AI systems that can perform tasks on behalf of users. As these tools become more widely used, central processing units (CPUs), such as those produced by Intel, are becoming increasingly important for data center operators and hyperscalers.

Although AI models are still primarily run on graphics processing units (GPUs) or similar hardware from companies like Amazon (AMZN) or Google (GOOG, GOOGL), AI agents rely heavily on CPUs for everyday tasks such as browsing websites or processing data in spreadsheets. This shift is increasing demand for traditional CPU chips.

For the first quarter, analysts surveyed by Bloomberg expect Intel to report earnings per share (EPS) of $0.01 on revenue of $12.36 billion. In the same period last year, the company posted EPS of $0.13 and revenue of $12.67 billion.

Intel’s Data Center and AI division is projected to generate $4.41 billion in revenue, representing a 6.8% year-over-year increase. During its fourth-quarter earnings call, the company said it had faced supply constraints due to strong demand but expects conditions to improve after the first quarter.

At the same time, Intel is also dealing with the broader memory chip shortage, which has been weighing on personal computer sales.

News.Az 

By Nijat Babayev